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Wednesday, January 11, 2017

Russell 2000 ETF (IWM) Put Options

Thu. 1/5/2017 (10:44:59 am, PT)

sell short  −2 Feb 17, 2017  $134 puts at $2.38

probability of success:  58.48% 

These short puts are almost at-the-money, so it's important to close them as soon as I have a nice profit (this is, of course, subjective).

Wed. 1/11/2017 (12:52:18 pm, PT)

buy back puts at $1.84

PROFIT:  $108

On 1/19/2017, these short puts went in-the-money and it would have cost $2.62 to buy them back.