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Wednesday, June 29, 2016

Spiders (SPY) Put Options

6/15/2016 (12:37:42 pm, PT)  FP

For my friend's mother ...

sold -8 July 2016  $194 puts at $1.01

Why did I place this trade?
  • stochastics in oversold region
  • FOMC announcement at 11 am (SPY rose initially, then dropped)
  • 85% probability of success

6/29/2016 (9:31:15 am, PT)

buy back all 8 puts at $0.27

NET PROFIT:  $567.60

SUCCESS!


Spiders (SPY) Put Options

6/15/2016 (12:07:04 pm, PT)  RD

For my friend ...

sold -7 July 2016  $197 puts at $1.29

Why did I place this trade?
  • stochastics in oversold region
  • FOMC announcement at 11 am (SPY rose initially, then dropped)
  • 80% probability of success

6/29/2016 (9:32:37 am, PT)

buy back all 7 puts at $0.47

NET PROFIT:  $552.64

SUCCESS!

Spiders (SPY) Put Options

6/15/2016 (11:39:04 am, PT)  FP

For my friend's mother ....

sold -10 August 2016  $180 puts at $1.05

Why did I place this trade?
  • stochastics in oversold region
  • FOMC announcement at 11 am (SPY initially rose, then dropped)
  • 89% probability of success


6/29/2016 (9:08:53 am, PT)

buy back all 10 puts at $0.50

NET PROFIT:  $519.46 (in 2 weeks)

SUCCESS!


Spiders (SPY) Put Options

6/15/2016 (12:43:30 pm, PT)  RD

For my friend ...

sold -4 July 2016  $201 puts at $2.08

Why did I place this trade?
  • stochastics in oversold region
  • FOMC announcement at 11 am (SPY rose initially, then dropped)
  • 70% probability of success


6/29/2016 (9:30:40 am, PT)

bought back all 4 puts at $0.95

NET PROFIT:  $439.78

SUCCESS!


Spiders (SPY) Put Options

6/15/2016 (12:02:05 pm, PT)  RD

For my friend .....

sold -4 July 2016  $202 puts at $2.12

Why did I place this trade?

  • stochastics in oversold region
  • FOMC announcement at 11 am (SPY rose initially, then dropped)
  • 70% probability of success


6/29/2016 (9:31:51 am, PT)

buy back all 4 puts at $1.15

Why did I close this trade?

  • take profits!

NET PROFIT:  $375.77

SUCCESS!



Tuesday, June 28, 2016

Gold (GLD) Call Options

Friday, 6/24/2016 (12:58:23 pm, PT)

sold -10 June 30, 2016  $129 calls at $0.91

Why did I place this trade?
  • "BREXIT" results were announced in the middle of the night and gold jumped 5%
  • when GLD rises, its implied volatility also rises which results in very attractive call premiums
  • 73% probability of success
  • stochastics in overbought region

Tuesday, 6/28/2016 (10:53:58 am, PT)

bought back all 10 calls at $0.19

Why did I place this trade?
  • GLD dropped today (6/28)
  • when GLD drops, its implied volatility also drops which results in cheaper call premiums
  • TAKE PROFITS

Comments:

It's VERY tempting to hold my position for TWO more days in order to keep the max credit of $910, but it's good practice to always TAKE YOUR PROFITS

PROFIT:  $720 (in 3 trading days)

SUCCESS!



Friday, June 24, 2016

Gold (GLD) Call Options

Friday, 6/24/2016 (7:16:24 am, PT)

sold (to open) -10 June 24, 2016  $126.50 calls at $0.22

Why did I place this trade?
  • GLD shot up over 5% this morning after the "BREXIT" results were announced in the middle of the night (i.e., after 11:59 pm of Thursday, June 23)
  • when GLD shoots up like this, its "implied volatility" (IV) also goes up
  • a higher IV means higher call premiums (OPPORTUNITY to make some quick $$$)
  • 76% probability of success

Comments:

  • GLD was extremely "choppy" all day long on 6/24, so my call's premium remained high throughout the day (even though it was expiration Friday)
  • GLD hovered below my strike price of $126.50 all day long (good thing!)
  • I placed a limit order to buy back my short calls at $0.01 and waited and waited ....
  • at 12:58 pm (with 2 minutes left), the bid was $0.01 and the ask was $0.07 even though my short calls were OTM (those darn market makers!)
  • at 1:00 pm (closing bell), the ask was still at $0.05, so my limit order never filled!  I couldn't believe it!
  • GLD closed at $126, so my short calls expired "worthless"

PROFIT:  $220 (in 6 hours)

SUCCESS!