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!
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!
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!
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!
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?
NET PROFIT: $375.77
SUCCESS!
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!
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!
