Thu. 10/25/2018
Trade 1 (9:38:02 am, PT) ← SPX around 2698
sell short -6 Oct 26, 2018 2715 calls at $11.30 (very nice premium!)
delta: 35.80
Trade 2 (1:01:11 pm, PT)
buy back calls at $10.40 (for a quick profit)
PROFIT: $540
Comments:
- SPX continued to rise after I sold (to open) my short call options (bad!)
- At 11:49 am (2 hours later), SPX hit a high of 2722.33 and my calls were trading at $20.20 (I had a temporary "paper loss" of $5340!) 😖😨
- At 1:01 pm, PT, I decided to buy back my calls at $10.40 and take a quick profit because I wasn't sure if Amazon's earnings and Alphabet's (Google) earnings were going to be good or bad
- Amazon's earnings and Google's earnings turned out to be bad, so SPX dropped in the after-hours market
- By 1:15 pm, PT, my call options were trading between $5.40 and $6.50 😩
- The greedy side of my brain wants to say, "I wish I had held my calls longer!"
- The conservative side of my brain says, "It's a good thing I took my profits because things could have gone the other way."
What would YOU have done in this situation??
Learn to SELL CALL OPTIONS HERE!
Monday 10/8/2018 (Expiration Monday)
Trade 1 (10:21:22 am, PT) ← SPX around 2865
sell -6 Oct 8, 2018 2845 puts at $1.00
buy +6 Oct 8, 2018 2815 puts at $0.10
- net credit: $0.90 x 6 x 100 = $540 (max profit)
- margin: $18,000
Trade 2 (10:44:15 am, PT)
buy back all 6 short puts (2845) at $0.20 to take profits and remove the risk
PROFIT: $420 (in 23 minutes!)
WATCH FREE OPTIONS VIDEOS HERE!
Friday 10/5/2018 (Expiration Friday)
Trade 1 (9:53:29 am, PT)
buy +6 Oct 5, 2018 2905 calls at $0.10 ← cheap wing
sell -6 Oct 5, 2018 2890 calls at $1.40 ← 18 delta
net credit: $1.30 x 6 x 100 = $780 (max profit)
Trade 2 (12:57:13 pm, PT)
buy back all 6 short calls (2890) at $0.10 to remove the risk
PROFIT: $720 (in 3 hours)
WATCH THE VIDEO HERE!
Monday, 10/1/2018 (Expiration Monday)
Trade 1 (10:16:44 am, PT) ← SPX between 2928.40 & 2929.20
buy +6 Oct 1, 2018 2950 calls at $0.05 ← cheap wings
sell -6 Oct 1, 2018 2930 calls at $1.55
net credit: $1.50 x 6 x 100 = $900 (max profit)
buying power reduction: ($12,000)
Trade 2 (12:26:25 pm, PT)
buy back short calls (2930) at $0.10 to take profits and remove the risk
PROFIT: $840 (2 hours, 10 minutes)
Learn to SELL credit call spreads here!