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!)
- 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!!!