SPY ratio put spread

Friday, 11/18/2016 (9:10:40 am, PT) RD

+1  Dec 30, 2016  $218 put at $3.77
-2  Dec 30, 2016  $217 puts at $3.355 (46% prob ITM)

• Net credit received:  $2.94 x 1 x 100 =  $294
• Max profit (potential):  $394
• Breakeven:  $213.06
• 42 days 'til expiration

Wednesday, 11/23/2016 (12:48:01 pm, PT)

sell (to close) long put at $2.44
buy (to close) short puts at $2.13

• Net debit:  $1.82 x 1 x 100 =  $182

TOTAL NET PROFIT:  $102.83 (in 3 trading days)

SUCCESS!

Spiders (SPY) Put Options

Friday, 10/7/2016 (8:00 am, PT)

sold (to open) -10 Oct 14, 2016  $212.50 puts at $0.61


Monday, 10/10/2016 (1:14:50 pm, PT)

bought back all puts at $0.15

PROFIT:  $460 (in ONE trading day!)

SUCCESS!

SPY Put Options

Thu. 9/8/2016 (10:18:02 am, PT)

sell (to open) -10 Sep 16, 2016  $215 puts at $0.54

credit received:  $0.54 ($540)


Fri. 9/16/2016 (8:45:49 am, PT) (expiration)

buy (to close) +10 Sep 16, 2016  $215 puts at $1.83 (debit)
sell (to open) -10 Sep 30, 2016  $214 puts at $2.83 (credit)

new credit received:  $1.00 ($1000)

Comments: 

I "rolled" my Sep 16 short puts to the Sep 30 expiration cycle because:

• my Sep 16 puts were in-the-money on Sep 16 (expiration)
• simply buying back my ITM puts would have resulted in a LOSS of $1290 (I don't like to lose money)
• I wanted to give my options more time
• I wanted to collect another "credit"

Fri. 9/30/2016 (8:04:21 am, PT) (expiration)

buy back Sep 30 puts at $0.05 (debit)

PROFIT:  $1490

SUCCESS!

Comments:

By "rolling" my ITM puts, I was able to come out with a PROFIT in the end.

SPY Put Options

Fri. 9/16/2016 (10:49:42 am, PT)

sell -2  Oct 21, 2016  $207 puts at $2.11

Why did I place this trade?

• stochastics in oversold region
• 69% probability of success

Wed. 10/5/2016 (11:40:53 am, PT)

buy back puts at $0.34

PROFIT:  $354

SUCCESS!

SPY Put Options

Tue 10/4/2016 (11:26 am, PT) FP

sell (to open) -10 Oct 14, 2016  $209.50 puts at $0.61

Why did I place this trade?

• big "down" day
• 80% probability of success
• 10 days 'til expiration (DTE)

Wed. 10/5/2016 (10:50 am, PT)

buy back all puts at $0.25

PROFIT:  $360 (in ONE day!!)

SUCCESS!

SPY Put Options

Wed. 9/28/2016 (8:02:18 am, PT)

sell (to open) -10 Oct 7, 2016  $211 puts at $0.61

Why did I place this trade?

• 78% probability of success
• 9 days 'til expiration

Fri. 9/30/2016 (9:40 am, PT)

buy back all puts at $0.23

PROFIT:  $380 (in TWO days!)

SUCCESS!

SPY Put Options

Wed. 9/14/2016 (12:23:27 pm, PT)

sell (to open) -1 Oct 21, 2016  $208 put at $2.96

Why did I place this trade?

• stochastics in oversold region
• 64% probability of success
• 37 days 'til expiration

Wed. 10/5/2016 (8:45:09 am, PT)

buy back put at $0.44

PROFIT:  $252

SUCCESS!

SPY Put Options

Tue. 8/30/2016 (11:09:25 am, PT)

sell (to open) -1 Oct 5, 2016  $214 put at $2.23

Why did I place this trade?

• stochastics in oversold region
• 63% probability of success
• 36 days 'til expiration

Wed. 10/5/2016 (6:30 am, PT)

buy back put at $0.08 (my preset closing order filled at Opening Bell)

PROFIT:  $215

SUCCESS!

QQQ Put Options

Tue. 8/30/2016 (10:41:54 am, PT)

sell -1 Oct 7, 2016  $115 put at $1.60

Why did I place this trade?

• stochastics in oversold region
• 60% probability of success

Mon. 10/3/2016 (12:46:40 pm, PT)

buy back put at $0.05

PROFIT:  $155

SUCCESS!

Gold (GLD) Put Options

Thu. 8/11/2016 (10:17:35 am, PT)

sold -10 Aug 2016  $127 puts at $0.50

Why did I place this trade?

• stochastics in the middle
• 8 days 'til expiration (DTE)
• 69% probability of success

Fri. 8/19/2016 (6:47:57 am, PT)  Expiration Day

my preset closing order at $0.01 filled 17 minutes after the Opening Bell

PROFIT:  $490 (in one week)

SUCCESS!

Spiders (SPY) Put Options

Wed. 8/17/2016 (11:27:19 am, PT)

sold -10 Aug 26 2016  $214.50 puts at $0.44

credit received:  $440

Why did I place this trade?

• FOMC released its minutes at 11 am
• 9 days 'til expiration (DTE)

Fri. 8/19/2016 (1:02:25 pm, PT)

bought back puts at $.20 (50% of max credit)

PROFIT:  $240 (in 3 days)

SUCCESS!

Whole Foods (WFM) Put Options

Tue. 8/9/2016 (11:17:42 am, PT)

sold -4 Sept 2016  $30 puts at $0.65

Why did I place this trade?

• stochastics in oversold region
• 38 days 'til expiration (DTE)
• 57% probability of success

Tue 8/23/2016 (6:30:27 am, PT)

bought back puts at $0.28

PROFIT:  $148 (in 2 weeks)

SUCCESS!

Wal-Mart Pre-earnings Play

Mon. 8/15/2016 (11:17:34 am, PT)

sold -1 Aug 2016  $72 put at $0.99

credit received:  $99

Why did I place this trade?

• stochastics near the middle but dropping
• down day
• earnings announcement on 8/18 (before market open)
• 4 days 'til expiration (DTE)

Thur. 8/18/2016 (6:30:15 am, PT)

my preset closing order at $0.05 filled at the Opening Bell (earnings were released at 4 am, PT)

PROFIT:  $94  (in 3 days)

SUCCESS!

Whole Foods (WFM) Put Options

Friday, 8/5/2016 (11:05:12 am, PT) RD

sold -1 Sept 2016  $30 put at $0.79

credit received:  $79

Why did I place this trade?

• stochastics in oversold region
• 42 days 'til expiration (DTE)
• 54% probability of success

Wednesday, 8/24/2016 (9:20:08 am, PT)

bought back puts at $0.26

PROFIT:  $53

SUCCESS!

Industrials ETF (XLI) Put Options

Wed. 8/3/2016 (10:16:25 am, PT)  RD

sold -1 Sept 2016  $57 put at $0.94

Why did I place this trade?

• stochastics in oversold region
• 57% probability of success
• 44 days 'til expiration

Thu. 8/11/2016 (10:31:44 am, PT)

bought back put at $0.44 (50% of max profit)

PROFIT:  $50 (in one week)

SUCCESS!

Disney (DIS) Earnings Play

Tue. 8/9/2016 (12:58:51 pm, PT)

sold -1 Aug 12, 2016  $96 put at $1.37

Comments:

• This was an "earnings play"
• I don't mind owning DIS stock, so my short put was almost at-the-money

Wed. 8/10/2016 (10:47:11 am, PT)

bought back put at $0.05

PROFIT:  $132 (in ONE DAY!)

SUCCESS!

Gold (GLD) Calls

Wed. 8/3/2016 (12:48:22 pm, PT)  FP

sold -10 Sept 2016  $135 calls at $1.04

Why did I place this trade?

• stochastics in overbought region (SEE CHART)
• 77% probability of success
• 44 days 'til expiration (DTE)

Tue. 8/9/2016 (9:50:50 am, PT)

bought back calls at $0.47

PROFIT:  $570 (in 6 days!)

SUCCESS!

Gold (GLD) Put Options

Thu. 7/21/2016 (8:57:37 am, PT)  FP

sold -5 Aug 2016  $124 puts at $1.11

Why did I place this trade?

• stochastics in oversold region
• 79% probability of success

Fri. 7/29/2016 (9:08:53 am, PT)

buy back all puts at $0.31

NET PROFIT:  $384.74 (in 1 week)

Success!

Energy ETF (XLE) Put Options

Thursday, 7/28/2016 (9:37:05 am, PT)  RD

sell (to open) -2 Sept 2016  $64 puts at $1.23

Why did I place this trade?

• stochastics in oversold region
• 65% probability of success

Friday, 7/29/2016 (12:11:17 pm, PT)

buy back both puts at $0.92

Why did I close my position?

• take profits
• I changed my mind about the trade

NET PROFIT:  $55.89 (in ONE DAY)

Success!

Gold (GLD) Custom Ratio Spread

Wed. 7/20/2016 (11:58:07 am, PT)  RD

sell to open -3 Aug 2016  $123 puts at $1.14667 (31% prob ITM)
buy to open +1 Aug 2016  $120 put at $0.48

• net credit received:  $2.96 (or $296)

Why did I place this trade?

• stochastics in oversold region
• 69% probability of success
• long put is "insurance"

Fri. 7/29/2016 (12:04:39 pm, PT)

buy to close the 3 short puts at $0.18
sell to close the 1 long put at $0.06

• net debit spent:  $0.48 (or $48)

PROFIT:  $248 (in 9 days)

Success!

Gold (GLD) Put Options

Fri. 7/22/2016 (9:26:45 am, PT)  FP

sold -2 Aug 2016  $123 puts at $1.08

Why did I place this trade?

• stochastics in oversold region
• 70% probability of success

Fri. 7/29/2016 (11:26:55 am, PT)

buy back all puts at $0.19

NET PROFIT:  $171.89 (in 1 week)

Success!

 

Gold (GLD) Put Options

Friday, 7/22/2016 (11:14:55 am, PT)  RD

sold -1 Aug 2016  $123 put at $1.03

Why did I place this trade?

• stochastics in oversold region
• 71% probability of success

Friday, 7/29/2016 (8:58:14 am, PT)

buy back put at $0.23

NET PROFIT:  $76.93 (in 1 week)

Success!

Expedia (EXPE) Earnings Play

Thu. 7/28/2016 (12:47:53 pm, PT)

sold -1 July 29, 2016  $110 put at $1.20

Why did I place this trade?

• earnings announcement at 1 pm (PT)
• "expected move" = up or down $8.82 (EXPE closed at $119.27 right before the earnings announcement)

Fri.  7/29/2016 (10:43:19 am, PT) (expiration)

bought back put at $0.02 to remove the risk

NET PROFIT:  $116.44 (in ONE DAY)

Success!

Gold (GLD) Put Options

Thursday, 7/28/2016 (10:11:04 am, PT)  FP

sold -5 Aug 2016  $123.50 puts at $0.56

Why did I place this trade?

• stochastics in oversold region
• 79% probability of success

Friday, 7/29/2016 (9:09:47 am, PT)

buy back all puts at $0.26

NET PROFIT:  $134.75 (in ONE day)

Success!

Gold (GLD) Put Options

Thursday, 7/21/2016 (11:27:41 am, PT)

sell to open -10 July 29, 2016  $123.50 puts at $0.28

Why did I place this trade?

• stochastics in oversold region
• 84% probability of success (high)
• 8 days 'til expiration
• weekly income

Thursday, 7/28/2016 (10:48:42 am, PT)

buy to close all 10 puts at $0.01

PROFIT:  $270 (in 7 days)

Success!

Spiders (SPY) Custom Ratio Put Spread

Tuesday, 7/5/2016 (10:12:40 am, PT)  RD For my friend ....

sell -3 August 2016  $201 puts at $2.11 (30% prob ITM)
buy +1 August 2016  $199 put at $1.77

credit received:  $4.56 x 1 x 100 = $456.00

Why did I place this trade?

• stochastics in overbought region
• 7/5/2016 was a "down" day
• 45 days 'til expiration
• high probability of success

Friday, 7/8/2016 (10:34:12 am, PT)

bought back entire spread for $2.16 (debit)

PROFIT:  $240 (in FOUR days!)

SUCCESS!

Spiders (SPY) Put Options

6/15/2016 (12:37:42 pm, PT)  FP

For my friend's mother ...

sold -8 July 2016  $194 puts at $1.01

Why did I place this trade?

• stochastics in oversold region
• FOMC announcement at 11 am (SPY rose initially, then dropped)
• 85% probability of success

6/29/2016 (9:31:15 am, PT)

buy back all 8 puts at $0.27

NET PROFIT:  $567.60

SUCCESS!

Spiders (SPY) Put Options

6/15/2016 (12:07:04 pm, PT)  RD

For my friend ...

sold -7 July 2016  $197 puts at $1.29

Why did I place this trade?

• stochastics in oversold region
• FOMC announcement at 11 am (SPY rose initially, then dropped)
• 80% probability of success

6/29/2016 (9:32:37 am, PT)

buy back all 7 puts at $0.47

NET PROFIT:  $552.64

SUCCESS!

Spiders (SPY) Put Options

6/15/2016 (11:39:04 am, PT)  FP

For my friend's mother ....

sold -10 August 2016  $180 puts at $1.05

Why did I place this trade?

• stochastics in oversold region
• FOMC announcement at 11 am (SPY initially rose, then dropped)
• 89% probability of success

6/29/2016 (9:08:53 am, PT)

buy back all 10 puts at $0.50

NET PROFIT:  $519.46 (in 2 weeks)

SUCCESS!

Spiders (SPY) Put Options

6/15/2016 (12:43:30 pm, PT)  RD

For my friend ...

sold -4 July 2016  $201 puts at $2.08

Why did I place this trade?

• stochastics in oversold region
• FOMC announcement at 11 am (SPY rose initially, then dropped)
• 70% probability of success

6/29/2016 (9:30:40 am, PT)

bought back all 4 puts at $0.95

NET PROFIT:  $439.78

SUCCESS!

Spiders (SPY) Put Options

6/15/2016 (12:02:05 pm, PT)  RD

For my friend .....

sold -4 July 2016  $202 puts at $2.12

Why did I place this trade?

• stochastics in oversold region
• FOMC announcement at 11 am (SPY rose initially, then dropped)
• 70% probability of success

6/29/2016 (9:31:51 am, PT)

buy back all 4 puts at $1.15

Why did I close this trade?

• take profits!

NET PROFIT:  $375.77

SUCCESS!

Gold (GLD) Call Options

Friday, 6/24/2016 (12:58:23 pm, PT)

sold -10 June 30, 2016  $129 calls at $0.91

Why did I place this trade?

• "BREXIT" results were announced in the middle of the night and gold jumped 5%
• when GLD rises, its implied volatility also rises which results in very attractive call premiums
• 73% probability of success
• stochastics in overbought region

Tuesday, 6/28/2016 (10:53:58 am, PT)

bought back all 10 calls at $0.19

Why did I place this trade?

• GLD dropped today (6/28)
• when GLD drops, its implied volatility also drops which results in cheaper call premiums
• TAKE PROFITS

Comments:

It's VERY tempting to hold my position for TWO more days in order to keep the max credit of $910, but it's good practice to always TAKE YOUR PROFITS

PROFIT:  $720 (in 3 trading days)

SUCCESS!

Gold (GLD) Call Options

Friday, 6/24/2016 (7:16:24 am, PT)

sold (to open) -10 June 24, 2016  $126.50 calls at $0.22

Why did I place this trade?

• GLD shot up over 5% this morning after the "BREXIT" results were announced in the middle of the night (i.e., after 11:59 pm of Thursday, June 23)
• when GLD shoots up like this, its "implied volatility" (IV) also goes up
• a higher IV means higher call premiums (OPPORTUNITY to make some quick $$$)
• 76% probability of success

Comments:

• GLD was extremely "choppy" all day long on 6/24, so my call's premium remained high throughout the day (even though it was expiration Friday)
• GLD hovered below my strike price of $126.50 all day long (good thing!)
• I placed a limit order to buy back my short calls at $0.01 and waited and waited ....
• at 12:58 pm (with 2 minutes left), the bid was $0.01 and the ask was $0.07 even though my short calls were OTM (those darn market makers!)
• at 1:00 pm (closing bell), the ask was still at $0.05, so my limit order never filled!  I couldn't believe it!
• GLD closed at $126, so my short calls expired "worthless"

PROFIT:  $220 (in 6 hours)

SUCCESS!

Gold (GLD) June Call Option

5/11/2016 (11:44:47 am, PT)  (RD)

sold -1 June 2016  $127 call at $1.11

Why did I place this trade?

• stochastics in overbought region
• 75.63% probability of success

5/20/2016 (9:20:24 am, PT)

buy back call option at $0.35 (68% of max credit)

PROFIT:  $76 (in 9 days)

SUCCESS!

Facebook (FB) Call Options

5/12/2016 (9:43:24 am, PT)  (FP)

sell -2 June 24, 2016  $127 calls at $1.18

Why did I place this trade?

• stochastics in overbought region
• 80% probability of success
• 43 days 'til expiration (DTE)

5/18/2016 (7:08:49 am, PT)

buy back both calls at $0.60

NET PROFIT:  $116
Return on capital:  3.15% in 6 days

SUCCESS!

Consumer Discretionary ETF (XLY) Call Options

Friday, 4/29/2016 (11:20:39 am, PT)

sold -10 May 20, 2016  $79.50 calls at $0.83

Why did I place this trade?

• stochastics in overbought region
• 60% probability of success

Friday, 5/6/2016 (7:37:01 am, PT)

buy back all 10 calls at $0.50

Why did I place this trade?

• stochastics near oversold region
• I was aiming for a $330 profit

PROFIT:  $330 (in 1 week)

SUCCESS!

Note:  Walt Disney Company (DIS) is one of the holdings in XLY