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Friday, May 20, 2016

Gold (GLD) June Call Option

5/11/2016 (11:44:47 am, PT)  (RD)

sold -1 June 2016  $127 call at $1.11

Why did I place this trade?
  • stochastics in overbought region
  • 75.63% probability of success


5/20/2016 (9:20:24 am, PT)

buy back call option at $0.35 (68% of max credit)

PROFIT:  $76 (in 9 days)


SUCCESS!


Wednesday, May 18, 2016

Facebook (FB) Call Options

5/12/2016 (9:43:24 am, PT)  (FP)

sell -2 June 24, 2016  $127 calls at $1.18

Why did I place this trade?
  • stochastics in overbought region
  • 80% probability of success
  • 43 days 'til expiration (DTE)

5/18/2016 (7:08:49 am, PT)

buy back both calls at $0.60

NET PROFIT:  $116
Return on capital:  3.15% in 6 days

SUCCESS!

Friday, May 6, 2016

Consumer Discretionary ETF (XLY) Call Options

Friday, 4/29/2016 (11:20:39 am, PT)

sold -10 May 20, 2016  $79.50 calls at $0.83

Why did I place this trade?
  • stochastics in overbought region
  • 60% probability of success

Friday, 5/6/2016 (7:37:01 am, PT)

buy back all 10 calls at $0.50

Why did I place this trade?
  • stochastics near oversold region
  • I was aiming for a $330 profit

PROFIT:  $330 (in 1 week)

SUCCESS!


Note:  Walt Disney Company (DIS) is one of the holdings in XLY

Tesla (TSLA) Post-earnings play

Thursday, 5/5/2016 (11:18:43 am, PT)

sold -1 May 6, 2016  $205 put at $0.91

Why did I place this trade?
  • earnings were announced after the close on 5/4/2016
  • the stock dropped on 5/5, so implied volatility was still high
  • quick, 1-day trade to take advantage of the inflated IV
  • 79% probability of success
  • Robyn at Tasty Trade sold the May 6 $210 put (thanks, Robyn!)

Friday, 5/6/2016 (9:36:42 am, PT)

buy back put at $0.05

PROFIT:  $86 (in ONE day!)

SUCCESS!

Comments:
  • My put option hit $0.04 at 6:34 am this morning (5/6), but I had forgotten to set a "buy to close order at $0.05" last night, so I missed it this morning.
  • Between 6:34 am and 9:36 am, TSLA dropped, so the put price rose again.
  • The market makers made me suffer for 3 hours before finally accepting my bid of $0.05.

The moral of the story:

ALWAYS have your closing orders in place!!!

Tuesday, May 3, 2016

Energy Sector (XLE) Call Options

Friday, 4/29/2016 (10:33:59 am, PT) (FP)

sell -10 May 2016  $70 calls at $0.51

Why did I place this trade?
  • stochastics in overbought region
  • 78.60% probability of success

Tuesday, 5/3/2016 (7:35:23 am, PT)

buy to close calls at $0.21

Why did I place this trade?
  • take profits at 50% of max credit

PROFIT:  $300 (in 3 trading days!)


SUCCESS!