3/26/2014 (RD)
+1 January 2015 $115 call at $7.70 (ATM call)
-1 January 2015 $115 put at $9.05 (ATM put)
Net credit: $1.35
Reason for initiating trade: "oversold"
(see chart)
6/19/2014
sell to close call option at $7.12
buy to close put option at $6.27
Net credit: $0.85
Reason for closing trade: "overbought"
(see chart)
TOTAL NET PROFIT: $200.93
LESSONS:
On 4/2/2014 (see chart), IWM was "overbought" again. If I had closed my position that day ($1.94 credit), my gross profit would have been $329 in just SIX days!! But no....I waited instead.... and IWM took a dive. So, the LESSON is: TAKE YOUR PROFITS!!! (especially if you're trading long options)
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