Friday, 4/22/2016 (11:33:10 am, PT)
sell -4 May 2016 $144 puts at $1.13
Why did I place this trade?
- stochastics in oversold region
- 75% probability of success
Tuesday, 4/26/2016 (8:26:57 am, PT)
buy back all puts at $0.50
Why did I place this trade?
- I've collected more than 50% of the max in just 3 trading days
- take profits!
PROFIT: $252
SUCCESS!
4/21/2016 (12:50:48 pm, PT)
sell -3 April 22, 2016 $78 puts at $0.36
Why did I place this trade?
- Visa was reporting earnings after the close on 4/21
- implied volatility was relatively high
- I was more bullish than bearish
- 80% probability of success
- expected move = plus/minus $2.63
4/22/2016 (6:39:05 am, PT) [expiration]
buy back all 3 puts at $0.05
PROFIT: $93 (ONE day!)
SUCCESS!
Comments:
- I was REALLY lucky that the market makers let me buy back my short puts at $0.05 because that was lower than the "mid" price. Thank you, market makers!
- I'm REALLY happy that I closed my trade at $0.05 because exactly one hour later Visa dropped to $77.28.
- Notice that I made money even though I was wrong "directionally." This is due to post-earnings "volatility crush."
4/19/2016 (9:55:01 am, PT)
sell -2 April 22, 2016 $99.50 calls at $0.71
Why did I place this trade?
- earnings were released on 4/18
- stock dropped on 4/19
- I was bearish (short-term) on NFLX
- 76% probability of success
4/21/2016 (12:58:51 pm, PT)
buy back calls at $0.05
PROFIT: $132 (in 3 days)
Comments:
The high implied volatility of NFLX kept this call premium at $0.11 most of the day even though the stock was over $4.00 OTM with just 1 day remaining until expiration.
The call premium finally dropped to 5 cents with just 1 minute left in the trading session.
SUCCESS!
4/13/2016 (6:46:15 am, PT)
sell -10 April 22, 2016 (wk 4) $122 calls at $0.45
Why did I place this trade?
- stochastics in overbought region
- 78.50% probability of success
4/14/2016 (7:52:14 am, PT)
buy back calls at $0.16
PROFIT: $290 (in ONE day!)
SUCCESS!
4/14/2016 (9:44:14 am, PT)
sell -10 May 2016 $213 calls at $0.95
Why did I place this trade?
- stochastics in overbought region
- 77% probability of success
4/15/2016 (11:14:15 am, PT)
buy back all 10 puts at $0.71
PROFIT: $240 (in ONE day!)
SUCCESS!
4/7/2016 (9:48:08 am, PT)
sell -4 April 29, 2016 (wk 5) $29.50 puts at $0.39
Why did I place this trade?
- stochastics in oversold region
- 69% probability of success
4/18/2016 (7:48:17 am, PT)
buy to close puts at $0.14
PROFIT: $100
SUCCESS!
4/14/2016 (10:52:10 am, PT) (FP)
sell -2 April 22, 2016 (wk 4) $111 calls at $0.43
Why did I place this trade?
- stochastics in overbought region
- 83.50% probability of success
- CELG does not pay dividends (important when selling calls)
4/21/2016 (6:36:05 am, PT)
buy to close calls at $0.05
PROFIT: $76.00
SUCCESS!
COMMENTS:
Even though there's only one day left until expiration, it's always a good idea to buy back your short options at $0.05 (or less) to remove the risk.
It's a good thing I did that on 4/21 because exactly two hours later CELG jumped to $109.82. And who knows what will happen the next day, right?
3/31/2016 (10:31:47 am, PT) (FP)
sell -4 May 2016 $200 puts at $2.15
buy +4 May 2016 $190 puts at $0.83
Net credit: $1.32 x 4 x 100 = $528
4/19/2016 (11:03:14 am, PT)
buy to close the $200 puts at $0.74
sell to close the $190 puts at $0.23
Net debit: $0.51 x 4 x 100 = $204
PROFIT: $324
Return on capital: 8% (in 19 days)
SUCCESS!
Wed. 4/6/2016 (10:04:01 am, PT)
sold -2 May 2016 $115 puts at $1.83 (credit)
Why did I place this trade?
- stochastics in oversold region (check out my impeccable timing HERE)
- 60.13% probability of success
Tue. 4/12/2016 (10:21:04 am, PT)
bought back both puts at $0.84 (debit)
Why did I place this trade?
- stochastics in overbought region (check out my impeccable timing HERE)
- take profits
PROFIT: $198 (in 5 trading days)
SUCCESS!
4/6/2016 (8:44:34 am, PT)
sell -10 April 2016 $111 calls at $0.61 (bearish strategy)
Why did I place this trade?
- stochastics in overbought region
- buying momentum is decreasing
- strong "up" day ( = higher call premiums)
- 70% probability of success
4/7/2016 (11:08:55 am, PT)
buy back all 10 calls at $0.26
PROFIT: $350 (in ONE day!!)
SUCCESS!
