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Friday, January 4, 2019

Options trade: SPX short call (bearish trade)

Friday, 1/4/2019 (Expiration Friday)

Trade 1 (11:25:40 am, PT)

sell (to open) -1  Jan 4, 2019  2545 call option at $1.65 (delta 19.25)

Comment:  The markets gapped up right at the opening bell and continued to rise.  It had been a pretty strong "up" day, so I kept my trade small by selling only one contract.  Selling call options is a semi-bearish strategy.


Trade 2 (12:51:07 pm, PT)

buy back call option at $0.05 (to remove the risk and take profits)

Comment:  SPX closed at 2531.94 at 4 pm, ET (up 84.05).

PROFIT:  $160 (in 90 minutes)

LEARN TO SELL CALL OPTIONS HERE!