Tue. 3/22/2016 (11:16:09 am, PT)
sell -1 Apr 1, 2016 (week 1) $111 put at $1.14 (credit)
Why did I place this trade?
- stochastics in oversold region (see chart HERE)
- high implied volatility
- 70% probability of success
Wed. 3/30/2016 (10:45:41 am, PT)
buy back put at $0.43 (debit)
Why did I place this trade?
- On 3/29/2016, LNKD was downgraded
- On 3/30/2016, LNKD miraculously jumped over $3.00, so I closed my position to take PROFITS
GROSS PROFIT: $71
SUCCESS!
Thu. 3/24/2016 (12:20:55 pm, PT) FP
sell -10 Apr 2016 $112 puts at $0.41
Why did I place this trade?
- stochastics in oversold region
- 83% probability of success
Tue. 3/29/2016 (11:46:40 am, PT)
buy back all 10 puts at $0.17
Why did I place this trade?
- GLD up over $2.00
- TAKE PROFITS
GROSS PROFIT: $240 (in 4 trading days)
SUCCESS!
3/22/2016 (11:37:16 am, PT)
sell -10 Apr 1, 2016 (wk 1) $121.50 calls at $0.51
Credit received: $510
Why did I place this trade?
- stochastics in overbought region
- 75% probability of success
3/23/2016 (12:45:14 pm, PT)
buy back all 10 calls at $0.17
Why did I place this trade?
- GLD down $2.61
- take PROFITS!
PROFIT: $340 (in ONE day!)
SUCCESS!
3/22/2016 (12:35:32 pm, PT) FP
sell -10 Apr 1, 2016 (wk 1) $123 calls at $0.29
credit received: $290
Why did I place this trade?
- stochastics in overbought region
- 85% probability of success
3/23/2016 (11:58:37 pm, PT)
buy back all 10 calls at $0.12
Why did I place this trade?
- GLD down $2.29
- take profits!
PROFIT: $170 (in ONE day)
SUCCESS!
2/19/2016 (12:38:30 pm, PT)
buy +1 March 2016 $187 put at $2.58
sell -1 March 2016 $186 put at $2.31
net debit: $27 (max risk)
potential profit: $73 (max)
Why did I place this trade?
- stochastics in overbought region
- I was bearish but I didn't want to risk too much money in case I'm wrong
- trying my luck with a small debit trade
3/18/2016 (expiration)
SPY closed at $204.38, so my entire debit spread expired worthless
TOTAL LOSS: $27
COMMENTS:
- Even though SPY was in the "overbought" region on 2/19/2016, there's no guarantee that it would reverse and go back down.
- OTM debit trades are risky and have a low probability of success.
- I was just having some "fun" and decided to try my luck on this "casino play."
- I was only risking $27 which is manageable.
1/12/2016 (10:48:51 am, PT)
sell -1 Feb 2016 $105 put at $3.11
Why did I place this trade?
- stochastics in oversold region
- high implied volatility
- 47% probability of success (almost 50/50)
Comments:
- This put option was $0.16 in-the-money at the time.
- I don't normally sell puts that are ITM, but I was just having some fun plus I knew I could fix the trade if it went against me.
2/12/2016 (10:06:10 am, PT) [roll]
buy to close 1 Feb 2016 $105 put at $7.55
sell to open 1 Mar 2016 $105 put at $8.34
Net credit for roll: $0.79
Comments:
- I decided to roll on 2/12 because my put was ITM with only $0.11 of extrinsic value remaining.
- On exp. Friday (2/19), QQQ closed at $101.63.
3/11/2016 (7:21:44 am, PT)
buy back March $105 put at $0.97
Comments:
- My put was finally OTM again with 5 trading days left, so I decided to close my position and take profits.
GROSS PROFIT: $294 (in 2 months)
SUCCESS!
2/4/2016 (11:10:51 am, PT) FP
buy +1 March 2016 $181 put at $2.78
sell -2 March 2016 $180 puts at $2.55
Analysis:
- Net credit received: $2.32 x 1 x 100 = $232
- Theoretical max profit: ($2.32 + $1.00) x 1 x 100 = $332
- Stochastics in overbought region
2/11/2016 (11:28:05 am, PT)
sell (close) 1 March 2016 $181 put at $6.32
(stochastics in oversold region)
3/10/2016 (6:30:03 am, PT)
buy back remaining 2 short puts at $0.05
GROSS PROFIT: $854 (GREAT trade!!)
COMMENTS:
- My actual gross profit of $854 is much higher than the theoretical max profit because I "broke apart" my ratio spread and sold (close) my long put on 2/11/2016 when SPY was at the bottom.
- Once I sold (close) my long put, I ended up with an extra "naked" put.
SUCCESS!
2/10/2016 (12:36:38 pm, PT)
sold -1 March 2016 $177 put at $3.11
Why did I place this trade?
- stochastics in oversold region
- high implied volatility
- 70% probability of success
3/8/2016 (11:14:52 am, PT)
buy back my put at $0.05 to remove the risk and take profits
PROFIT: $306
SUCCESS!
