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!
