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Friday, December 21, 2018

Options trades: SPX index short call options (3 trades) (bearish trades)

Friday 12/21/2018 (Expiration Friday)

Trade 1A (9:42:23 am, PT)

sell (to open) -2  Dec 21, 2018  2490 call options at $2.35 (14 delta)


Trade 1B (10:53:08 am, PT)

buy (to close) both of the 2490 call options at $0.90

PROFIT:  $290


Trade 2A (11:40:11 am, PT)

sell (to open) -2  Dec 21, 2018  2460 call options at $1.85 (17 delta)
(notice that the strike price is 30 points lower than in Trade 1)

Trade 2B (12:12:22 pm, PT)

buy (to close) both of the 2460 call options at $0.65

PROFIT:  $240


Trade 3 (12:34:12, pm, PT)

sell (to open) -2  Dec 21, 2018  2435 call options at $2.60 (22 delta)
(notice that the strike price is 25 points lower than in Trade 2)

Note:  
I had submitted a limit order to buy back both of the 2435 calls at $0.05, but my order never filled even though my short calls were out-of-the money by $18.  I had never experienced such a thing before.  The "ask" remained at $0.55 all the way until the Closing Bell.  Those market makers missed out on taking my $10 because they got greedy!!

SPX closed at 2416.62 (down 50.80).

TOTAL PROFIT (3 separate trades):  $1050 (in 4 hours)

LEARN TO SELL CALL OPTIONS HERE!