8/22/2014 (11:08:06 am, PT) LL
- sold (to open) 4 October 2014 $120 puts at $1.21
- probability of success: 69%
10/10/2014 (9:03:56 am, PT)
- GLD was trading between $117.19 and $117.74, so my puts were ITM
- I rolled my 4 October 2014 puts to November 2014 (same strike of $120)
- Received another credit of $1.12
11/5/2014 (10:00:08 am, PT)
- GLD was trading around $110.27
- My short puts had about $0.05 of extrinsic value remaining
- I rolled my 4 November 2014 puts to March 2015 (same strike of $120)
- Received another credit of $1.45
1/20/2015 (10:57:09 am, PT)
- GLD was trading around $124ish
- The stochastics were in the "overbought" region
- I decided to close my position today
- Unfortunately, however, the implied volatility was extremely high, so I had to overpay ($2.32) to buy back my short puts. That's fine. I just wanted to take my PROFITS.
TOTAL NET PROFIT: $541.22 Success!
Learn to SELL PUT OPTIONS and GET PAID up front!
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12/12/2014 (10:41:48 am, PT) LL
+1 January 2015 $101 put at $1.55
-2 January 2015 $100 puts at $1.30
maximum credit: $1.05 x 1 x 100 = $105
maximum potential profit: ($1.05 + $1.00) x 1 x 100 = $205
Why did I place this trade?
- stochastics in the "oversold" region (see chart)
- price approaching 50 EMA (possible support?)
- probability of expiring ITM was 31% (for $100 strike)
1/15/2015 (12:41:53 pm, PT) (1 day before expiration)
QQQ was bouncing around $100 all day long (see chart).
I decided to sell (to close) my debit put spread for $0.64 ($64).
1/16/2015 (expiration)
QQQ closed at $100.82 (see chart).
My short strike was $100! Whew! That was close!!!!
I let my remaining short put expire.
TOTAL NET PROFIT: $151.09 Success!
Learn to SELL RATIO PUT SPREADS! You get paid up front and you can make money REGARDLESS of the direction of the underlying!
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12/10/2014 (11:22:08 am, PT) LL
sell (to open) 10 January 2015 $190 puts at $1.10
Why did I place this trade?
- SPY was touching the 50 EMA (possible support) [see chart]
- stochastics was near the oversold region [see chart]
- probability of success: 83%
1/9/2015 (6:30:03 am, PT)
buy (to close) all 10 puts at $0.03
TOTAL NET GAIN: $1054.98 Success!
The lesson.....
On 12/10/2014 (when I sold my puts at $1.10), SPY was trading between $202.93 and $205.98.
On 1/9/2015 (when I bought back my puts at $0.03), SPY was trading between $203.51 and $206.42.
If, during the same time frame, I had bought 1000 shares of SPY instead of selling put options, I would have broken even. However, by selling 10 put options, I came out with a profit of $1054.98! That's why I love to sell put options!
Learn to SELL PUT OPTIONS and GET PAID up front!
Learn on your own for FREE at my YouTube Channel or
Pay for 1-on-1 training (details here).
12/16/2014 (12:42:59 pm, PT) LL
sold to open 1 January 2015 $196 put at $3.87
Why did I place this trade?
- oversold region of stochastics (see chart)
- high implied volatility because of FOMC announcement on 12/17
- probability of success: 58%
1/8/2015 (1:04:28 pm, PT)
bought back put option at $0.14
Why did I close this trade?
NET PROFIT: $369.93 (ROC 1.887% in 3 weeks, 2 days)
Success!
Learn to SELL PUT OPTIONS and GET PAID up front!
Learn on your own for FREE at www.youtube.com/user/moneyandlilia or
Pay for 1-on-1 training (details here).
12/12/2014 (11:30:04 am, PT) FP
sold to open 2 January 2015 $186 puts at $1.15
maintenance required: $5371.60
Why did I place this trade?
- oversold region of stochastics (see chart)
- touching 50 EMA (possible support)
1/8/2015 (9:48:55 am, PT)
bought back both puts at $0.04
Why? TO TAKE PROFITS!
TOTAL NET PROFIT: $212.44 (ROC 3.95% in 4 weeks)
Success!
Learn to SELL PUT OPTIONS and GET PAID up front!
Learn on your own for FREE at www.youtube.com/user/moneyandlilia or
Pay for 1-on-1 training (details here).
