sold -4 August 28, 2015 $205 puts at $1.30
probability of success: 75%
Note:
- I was impatient and sold (to open) these puts even though the timing was horrible (i.e., the stochastics were in the "overbought" region)
- On August 28 (expiration), these options did, indeed, end up in-the-money
8/21/2015 (7:42:02 am, PT)
Roll all 4 August $205 puts to October 2, 2015 $200 puts
Net credit: $0.45
Note:
- The net credit of $0.45 is very small, but I wanted to roll down my strikes for safety.
8/24/2015 (6:59:29 am, PT)
The Dow dropped 1000 points at the Opening Bell.
Roll all 4 Oct 2, 2015 $200 puts to November 2015 $200 puts
Net credit: $1.55
10/22/2015 (10:33:11 am, PT)
buy back all 4 Nov 2015 $200 puts at $1.58
Why did I close this trade?
- stochastics in overbought region
- SPY up 1.69% today
GROSS PROFIT: $688
Success!
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If your trade goes against you, you can make adjustments so you'll be profitable in the end.
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