+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!
Learn on your own for FREE at YouTube or
Pay for 1-on-1 training (details here).
