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Tuesday, November 24, 2015

Spiders (SPY) Dec Put Options

11/17/2015 (11:20:11 am, PT)

sold -3 December 2015  $199 puts for $2.06

Why did I place this trade?
  • stochastics in oversold region
  • probability of success = 70%
  • nice premium


11/24/2015 (10:27:07 am, PT)

bought back all 3 puts for $0.84

Why did I place this trade?
  • stochastics in overbought region
  • take PROFITS!

GROSS PROFIT:  $366 (in 7 calendar days)

Success!



Make a little extra income by SELLING PUT OPTIONS.
Learn on your own for FREE by watching MY VIDEOS HERE or
PAY for private training (details HERE).

Friday, November 20, 2015

Russell 2000 ETF (IWM) Iron Condor

10/1/2015 (12:58:12 pm, PT)  low stoch, high IV

buy +1 Nov 2015  $113 call (30% prob ITM)
sell  -1 Nov 2015  $111 call (39% prob ITM)
sell  -1 Nov 2015  $108 put (48% prob ITM)
buy +1 Nov 2015  $107 put (44% prob ITM)


FACTS:

  • net credit received:  $1.25 (or $125)
  • the call vertical is $2.00 wide
  • the put vertical is $1.00 wide
  • zero risk on the down side
  • $0.75 (or $75 risk on the up side)
  • this trade is more bearish than bullish
  • IWM was near $109 on 10/1


11/17/2015 (10:45:51 am, PT) (3 days before expiration)

  • buy back the call vertical for $1.76 (debit) to avoid losing the maximum ($75) on exp.
  • buy back the short $108 put for $0.04 (debit)
  • leave open the long $107 put in case IWM drops A LOT in the next 3 days (anything is possible, right?)


11/20/2015 (expiration)

IWM closed at $116.81

  • it's a good thing I bought back the call vertical on 11/17
  • the long $107 put expired worthless

TOTAL LOSS:  $55 (instead of $75 if I had held the entire trade until expiration)





COMMENTS:

When I entered the trade on 10/1/2015, I was more bearish than bullish.  
However, I also knew that there's always the probability that IWM could rally back up and go through my call strikes.  That's why I kept the risk under control by doing only 1 contract.

My goal was to buy back the entire iron condor at around $0.60 so I could walk away with a 50% profit.  However, I never had the opportunity because IWM started rising right after I placed my trade.

Looking back, I would say that this was a dumb trade.  I should have sold put options instead because the stochastics were in the oversold region and IV was VERY high.  Lesson learned!


Learn to SELL PUT OPTIONS by watching my videos HERE!

Wednesday, November 18, 2015

Spiders (SPY) Dec Put Options

11/17/2015 (12:21:26 pm, PT)  FP

sold -5 December 2015  $190 puts for $1.02

Why did I place this trade?
  • stochastics in oversold region
  • probability of success = 85%


11/18/2015 (1:10:40 pm, PT)

bought back all 5 puts for $0.51

Why did I close my position?
  • I made 50% of the maximum profit in ONE DAY
  • take profits!

GROSS PROFIT:  $255


Success!


SELL put options for income.
Learn on your own for FREE by watching my videos HERE or
Pay for one-on-one training (details HERE).

Wednesday, November 4, 2015

Tesla (TSLA) Earnings Play

11/3/2015

sold -1 Nov 6, 2015  $170 put at $0.45
sold -1 Nov 6, 2015  $175 put at $0.76

Comments:
I used two different strikes to spread the risk



11/4/2015

TSLA gapped up over $21 post-earnings, so I was able to buy back both puts at $0.02 each


GROSS PROFIT:  $117 in 1 day


Success!



Have some fun around earnings season and SELL PUTS!
Learn on your own for FREE by watching MY VIDEOS HERE or
Pay for one-on-one training (details HERE).

Tuesday, November 3, 2015

Visa (V) Earnings Play

Friday, 10/30/2015 (12:48:08 pm, PT)

sell -1 Nov 6, 2015  $76 put at $1.07


Tuesday, 11/3/2015 (6:46:53 am, PT)

buy back my put at $1.00

NET PROFIT:  $3.91

Comments:
  • Visa reported earnings before the Opening Bell on Monday, 11/2
  • Immediately after the earnings release, the stock dropped to an intraday low of $74.53 (not good)
  • By the end of Monday, 11/2, my short put was ITM (not good)
  • On Monday (11/2) evening, I decided to place a closing order to buy back my put at $1.00 to break even and cover my fees
  • Before the Opening Bell the next morning (Tuesday, 11/3), Visa announced that the company was planning to buy Visa Europe for $18.2 billion and the stock shot up
  • My closing order at $1.00 filled 16 minutes after the Opening Bell on 11/3
  • I could have made a lot more $$$$ if I had left my put option alone
  • My trade would have ended perfectly if Visa's CFO had announced the acquisition during the conference call on Monday (11/2) rather than waiting until the next day!!!!