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Wednesday, March 30, 2016

LinkedIn (LNKD) Put Options

Tue. 3/22/2016 (11:16:09 am, PT)

sell -1 Apr 1, 2016 (week 1)  $111 put at $1.14 (credit)

Why did I place this trade?
  • stochastics in oversold region (see chart HERE)
  • high implied volatility
  • 70% probability of success


Wed. 3/30/2016 (10:45:41 am, PT)

buy back put at $0.43 (debit)

Why did I place this trade?
  • On 3/29/2016, LNKD was downgraded 
  • On 3/30/2016, LNKD miraculously jumped over $3.00, so I closed my position to take PROFITS
GROSS PROFIT:  $71


SUCCESS!


Tuesday, March 29, 2016

Gold (GLD) April Put Options

Thu. 3/24/2016 (12:20:55 pm, PT) FP

sell -10 Apr 2016  $112 puts at $0.41

Why did I place this trade?
  • stochastics in oversold region
  • 83% probability of success


Tue. 3/29/2016 (11:46:40 am, PT)

buy back all 10 puts at $0.17

Why did I place this trade?
  • GLD up over $2.00
  • TAKE PROFITS

GROSS PROFIT:  $240 (in 4 trading days)


SUCCESS!



Wednesday, March 23, 2016

Gold (GLD) Call Options

3/22/2016 (11:37:16 am, PT)

sell -10 Apr 1, 2016 (wk 1)  $121.50 calls at $0.51

Credit received:  $510

Why did I place this trade?
  • stochastics in overbought region
  • 75% probability of success


3/23/2016 (12:45:14 pm, PT)

buy back all 10 calls at $0.17

Why did I place this trade?
  • GLD down $2.61
  • take PROFITS!

PROFIT:  $340 (in ONE day!)


SUCCESS!



Gold (GLD) Call Options

3/22/2016 (12:35:32 pm, PT)  FP

sell -10 Apr 1, 2016 (wk 1)  $123 calls at $0.29

credit received:  $290

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


3/23/2016 (11:58:37 pm, PT)

buy back all 10 calls at $0.12

Why did I place this trade?
  • GLD down $2.29
  • take profits!

PROFIT:  $170 (in ONE day)


SUCCESS!




Friday, March 18, 2016

Spiders (SPY) Mar debit put spread

2/19/2016 (12:38:30 pm, PT)

buy +1 March 2016  $187 put at $2.58
sell -1 March 2016  $186 put at $2.31

net debit:  $27 (max risk)
potential profit:  $73 (max)


Why did I place this trade?
  • stochastics in overbought region
  • I was bearish but I didn't want to risk too much money in case I'm wrong
  • trying my luck with a small debit trade


3/18/2016 (expiration)

SPY closed at $204.38, so my entire debit spread expired worthless  

TOTAL LOSS:  $27

COMMENTS:
  • Even though SPY was in the "overbought" region on 2/19/2016, there's no guarantee that it would reverse and go back down.
  • OTM debit trades are risky and have a low probability of success.
  • I was just having some "fun" and decided to try my luck on this "casino play."
  • I was only risking $27 which is manageable.

Friday, March 11, 2016

QQQ Put Options

1/12/2016 (10:48:51 am, PT)

sell -1 Feb 2016  $105 put at $3.11

Why did I place this trade?
  • stochastics in oversold region
  • high implied volatility
  • 47% probability of success (almost 50/50)

Comments:
  • This put option was $0.16 in-the-money at the time.  
  • I don't normally sell puts that are ITM, but I was just having some fun plus I knew I could fix the trade if it went against me.


2/12/2016 (10:06:10 am, PT)  [roll]

buy to close 1 Feb 2016  $105 put at $7.55
sell to open 1 Mar 2016  $105 put at $8.34

Net credit for roll:  $0.79

Comments:
  • I decided to roll on 2/12 because my put was ITM with only $0.11 of extrinsic value remaining.
  • On exp. Friday (2/19), QQQ closed at $101.63.


3/11/2016 (7:21:44 am, PT)
buy back March $105 put at $0.97

Comments:
  • My put was finally OTM again with 5 trading days left, so I decided to close my position and take profits.

GROSS PROFIT:  $294 (in 2 months)

SUCCESS!


Thursday, March 10, 2016

Spiders (SPY) Ratio Put Spread

2/4/2016 (11:10:51 am, PT)  FP

buy +1 March 2016  $181 put at $2.78
sell -2 March 2016  $180 puts at $2.55

Analysis:
  • Net credit received:  $2.32 x 1 x 100 =  $232
  • Theoretical max profit:  ($2.32 + $1.00) x 1 x 100 =  $332
  • Stochastics in overbought region


2/11/2016 (11:28:05 am, PT)

sell (close) 1 March 2016  $181 put at $6.32
(stochastics in oversold region)


3/10/2016 (6:30:03 am, PT)

buy back remaining 2 short puts at $0.05

GROSS PROFIT:  $854  (GREAT trade!!)

COMMENTS:
  • My actual gross profit of $854 is much higher than the theoretical max profit because I "broke apart" my ratio spread and sold (close) my long put on 2/11/2016 when SPY was at the bottom. 
  • Once I sold (close) my long put, I ended up with an extra "naked" put.


SUCCESS!



Tuesday, March 8, 2016

Spiders (SPY) March Puts

2/10/2016 (12:36:38 pm, PT)

sold -1 March 2016  $177 put at $3.11

Why did I place this trade?
  • stochastics in oversold region
  • high implied volatility
  • 70% probability of success


3/8/2016 (11:14:52 am, PT)

buy back my put at $0.05 to remove the risk and take profits

PROFIT:  $306

SUCCESS!