Tuesday, 4/2/2019 (9:34:14 am, PT)
sell short -1 May 17, 2019 2950 call option at $11.10
Facts:
- 20 delta
- stochastics in "overbought" region
- 45 days 'til expiration (ideal)
- credit received: $11.10 x 1 x 100 = $1110
Friday, 5/10/2019 (8:01:45 am, PT)
buy back short call option at $0.75 to protect my profits and remove the risk
COMMENTS:
- After I placed my bearish trade, SPX continued to rise (bad!)
- On 5/1/2019, SPX hit a new all-time high of 2954.13 (bad!)
- On 5/1/2019, my short call option was in-the-money by only 4.13 but it was trading at $26.36 (my "paper loss" was $1526 at the time)
- Luckily for me, SPX dropped after hitting the new all-time high on 5/1/2019
- On 5/10/2019, at 8:01:45 am, PT, SPX hit an intraday low of 2825.39 and I was able to buy back my short call option for only $0.75 ($75 for one contract)
- It's a GOOD thing I closed my trade when I did, because SPX shot back up over 65 points right after I closed my trade!
PROFIT: $1035
CLICK HERE to see the chart of SPX
CLICK HERE to see two videos of a similar SPX trade
Wednesday, 5/1/2019 (11:50:31 am, PT)
sell short -1 May 10, 2019 $1880 put option at $6.80
Facts:
- slow stochastics in "overbought" region
- this trade was a "hedge" against my short call option
- 20.32 delta
- credit received: $680
- 9 days 'til expiration (very short-term)
- FOMC press conference at 11:30 am, PT
Friday, 5/3/2019 (7:26:23 am, PT)
buy back my short put option at $3.00 to protect my profits and remove the risk (of assignment)
PROFIT: $380 (in 2 days)
Comments:
- On 5/10/2019 (Expiration), at 8:50 am (PT), Amazon was trading near $1856 and my put option was trading near $24.95! It's a GOOD thing I closed my trade on 5/3/2019!
- After some positive comments from the White House (regarding the US/China tariff negotiations), Amazon reversed back up to close at $1889.98 at 1 pm (PT)
- My short put option would have been fine if I had held it all the way until expiration (1 pm, PT), but who needs the stress? I was happy to get over 50% of max profit in just two days
CLICK HERE TO LEARN ABOUT PUT-SELLING.
Monday, 4/29/2019 (9:28 am, PT)
sell short -1 May 10, 2019 $1892.50 put option at $10.40 (25 delta)
Wednesday, 5/1/2019 (9:04:36 am, PT)
buy back put option at $6.60
Why?
- to protect my profit
- FOMC announcement at 11 am (high-risk event!)
PROFIT: $380 (2 days)
Learn to SELL put options with my FREE lessons here!
Friday, 4/26/2019 (8:56:47 am, PT) [EXPIRATION DAY]
sell short -1 April 26, 2019 $1910 put option at $2.51
Facts:
- Q1 earnings announcement the previous day (4/25) after the Closing Bell
- AMZN trading around $1917
- 30 delta
- selling put options is a semi-bullish strategy
- this is a same-day trade (4/26 expiration) to take advantage of theta time decay
- AMZN closed at $1950.63
Friday, 4/26/2019 (11:12:38 am, PT)
buy back put option at $0.11 (to remove the risk and protect my profit)
PROFIT: $240 (in 2.25 hours)
Learn to SELL put options with my FREE lessons here!
Thu. 4/25/2019 (10:25:28 am, PT)
sell short -1 April 26, 2019 $1810 put at $4.60
Facts:
- earnings announcement after the Closing Bell today (4/25)
- AMZN was trading around $1910.18 (I went $100 out-of-the-money)
- 11.80 delta (88.20% probability of success)
- option premiums are VERY attractive right before earnings announcements, so you can go further OTM
- "expected move" ("market maker move") was plus/minus $67 post-earnings
Fri. 4/26/2019 (6:30:00 am, PT)
buy (to close) $1810 put option at $0.01
PROFIT: $459 (1 day)
FREE LESSONS ON HOW TO SELL PUT OPTIONS!
Thu. 4/25/2019 (10:36:23 am, PT)
sell short -1 May 10, 2019 $277.50 call option at $1.53
Facts:
- earnings results were announced on 4/24, stock dropped $10 the next day (4/25)
- 15 days 'til expiration
- TSLA @ $247.56 (I went $30 out-of-the-money)
- 11.29 delta (relatively "safe")
Fri 4/26/2019 (9:04:42 am, PT)
buy (to close) short call option at $0.50
PROFIT: $103 (1 day)
Comments: I decided to close my trade for several reasons:
- to protect my profit
- I don't know what's going to happen in the next 14 days
- any type of positive news will result in a "short squeeze" and my short call will end up in trouble
FREE LESSONS: LEARN TO SELL CALL OPTIONS.
Fri. 4/12/2019 (10:17:37 am, PT)
sell short -1 July 19, 2019 $110 put at $1.68
Facts:
- 23.29 delta
- MSFT trading at $120.66
- 98 days 'til expiration
- stochastics "overbought"
- CNBC reported "unusual options activity" (heavy volume on the July $120 long calls)
- earnings report after the close on Wed. 4/24/2019
Wed. 4/24/2019 (8:47:33 am, PT)
buy (to close) put option at $0.94
Why? To protect my profits and to avoid any unpleasant surprises after the earnings announcement (at 1 pm, PT).
PROFIT: $74 (12 days)
Learn to SELL PUT OPTIONS here! FREE lessons!
Wed. 4/17/2019 (11:10:30 am, PT)
sell short -1 April 18, 2019 $1850 put option at $1.47
Facts:
- AMZN trading at $1868
- 15.73 delta
- "overbought" stochastics
- 1 day 'til expiration (DTE)
Thu. 4/18/2019 (12:49:02 pm, PT) [Expiration Thursday]
buy back $1850 put option at $0.02
PROFIT: $145 (in one day)
NOTE: Even though AMZN was trading near $1861 (4/18/2019) and my short put was relatively "safe," I didn't want to take any chances. Thus, I decided to spend $2.00 to buy back my short put and protect my profits.
LEARN TO SELL PUT OPTIONS BY WATCHING THESE VIDEOS.
Fri. 4/12/2019 (12:14:39 pm, PT)
sell short -1 April 18, 2019 $1790 put at $2.06
Facts:
- Amazon at $1844.67
- "overbought" stochastics
- 6 days 'til expiration
- 10.28 delta
Tue. 4/16/2019 (7:54:51 am, PT)
buy back put at $0.50 (take profits)
PROFIT: $156 (in two days)
Thu. 4/11/2019 (10:33:36 am, PT)
sell short -1 April 12, 2019 $1820 put at $1.28
Facts:
- Amazon at $1843.96
- 1 day 'til expiration
- "overbought" stochastics
- 12.42 delta
Fri. 4/12/2019 (9:44:23 am, PT)
buy back put at $0.05 (to remove the risk & take profits)
PROFIT: $123 (in one day)
Thursday, 4/11/2019 (12:04:22 pm, PT)
sell short -1 April 18, 2019 $285 call option at $1.40
Facts:
- TSLA was trading near $268.02
- bad news about TSLA manufacturing plant
- 15.13 delta
- 7 days 'til expiration (DTE)
- stochastics: middle
- margin: $2274.97
Friday, 4/12/2019 (11:12:19 am, PT)
buy to close at $0.90 (take profits)
PROFIT: $50 (in one day)
SEE SIMILAR TRADES ON YOUTUBE
Watch the free video here: VIDEO.
When you're trading options (puts and calls), your "opening" trade can be either a "sell" transaction or a "buy" transaction. That's right, you can SELL options first, get paid up front, and then buy back the options later. Thus, you sell high and hopefully, buy back low. The difference between your initial "sell" price and your subsequent "buy back" price is your profit.
Summary:
If your opening trade is a "sell," then just buy back the option to close your "short" position.
If your opening trade is a "buy," then just sell the option to close your "long" position.
For more details, check out THIS SHORT VIDEO.
Trade 1
Tuesday 3/5/2019 (12:13:54 pm, PT)
sell short -1 March 8, 2019 $1660 put at $2.61
Facts:
- 3 days 'til expiration
- 14 delta
Trade 2
Thursday, 3/7/2019 (12:56:53 pm, PT) [AMZN dropped $45, so I rolled down & out to April 12]
buy (to close) 1 March 8, 2019 $1660 put at $36.49
sell (to open) 1 April 12, 2019 $1590 put at $38.41
net credit: $1.92
Trade 3
Wednesday, 3/20/2019 (9:13:26 am, PT)
buy back April 12 $1590 put at $3.25
PROFIT: $128
I decided to close my trade before the FOMC announcement at 11 am (PT).
Thursday, 2/28/2019 (11:19:31 am, PT)
sell short -1 March 8, 2019 $1705 call at $2.74
Facts:
- 8 days 'til expiration
- "overbought" stochastics
- 10 delta
Friday, 3/8/2019 (8:19:34 am, PT) (Expiration Friday)
buy back March 8 $1705 call option at $0.01 (to remove the risk and take profits)
PROFIT: $273 (in one week)
Monday, 3/4/2019 (11:05:10 am, PT)
sell short -1 March 8, 2019 $1632.50 put at $2.47
Facts:
- 4 days 'til expiration
- 10.52 delta
Tuesday, 3/5/2019 (11:58:12 am, PT)
buy back put option at $0.80 (take profits)
PROFIT: $167 (in one day)
Thursday, 2/28/2019 (11:19:31 am, PT)
sell short -1 March 8, 2019 $1565 put at $2.63
Facts:
- 8 days 'til expiration (DTE)
- 10 delta
Friday, 3/1/2019 (12:54 pm, PT)
buy back put option at $0.95
Amazon rose $33, so it's time to close my trade and take profits.
PROFIT: $168 (in one day)
Tuesday 1/22/2019 (Expiration Day)
WATCH THE VIDEO HERE!
Trade 1 (10:25:33 am, PT)
buy +2 Jan 22, 2019 2665 calls at $0.05 (cheap wings)
sell -2 Jan 22, 2019 2635 calls at $2.00 (29 delta)
margin: (2665 － 2635) x 2 x 100 = $6000
credit (max potential profit): ($2.00 － $0.05) x 2 x 100 = $390
Trade 2 (11:54:09 am, PT)
buy back both short calls (2635) at $0.30
let the long calls (2665) expire worthless
PROFIT: $330 (in 90 minutes)
WATCH THE VIDEO HERE!
Friday 1/18/2019 (Expiration Friday)
WATCH THE VIDEO HERE!
Trade 1 (10:48 am, PT)
buy +2 January 18, 2019 2705 calls at $0.05 (cheap "wings")
sell -2 January 18, 2019 2675 calls at $1.80 (27 delta)
Trade 2 (11:38 am, PT)
buy back the 2 short calls (2675) at $0.60 (take profits and remove the risk)
PROFIT #1: $230 (in 45 minutes)
Trade 3 (11:55 am, PT)
sell -2 January 18, 2019 2675 calls at $0.80 (17.46 delta)
Comment: I'm selling (to open) two new calls (same strike) so I don't "waste" my two long calls ("wings") (there's still 1 hour left in the trading session)
Trade 4 (12:49 pm, PT)
buy back the 2 short calls (2675) at $0.10
Comment: The market makers were "torturing" me by making me wait until 12:49 pm. They refused to sell me the 2675 calls for $0.10 even though they were pretty far out-of-the-money
PROFIT #2: $140 (in 55 minutes)
TOTAL PROFIT: $370
Comments:
- at 12:52 pm, SPX was at 2663.37 and then staged a sharp reversal (back up)
- at 1:00 pm, SPX closed at 2670.71
- I'm VERY glad I bought back my short calls at $0.10 because that late-afternoon reversal would have completely stressed me out
WATCH THE VIDEO HERE!
Wednesday 1/16/2019 (Expiration Wednesday)
Trade 1 (9:52 am, PT)
sell -1 January 16, 2019 2630 call at $1.00 (16 delta)
Trade 2 (9:58 am, PT)
sell -1 January 16, 2019 2630 call at $1.05 (18 delta)
Trade 3
buy +2 January 16, 2019 2655 calls at $0.10 ("wings")
Trade 4 (12:46 pm, PT)
buy back both short calls (2630 strike) at $0.05 (to take profits & remove the risk)
PROFIT: $175
Monday, 1/14/2019 (Expiration Monday)
Trade 1 (10:15 am, PT)
buy +2 January 14, 2019 2625 calls at $0.05 ("wings")
sell -2 January 14, 2019 2595 calls at $1.15 (21.86 delta)
Trade 2 (11:46 am, PT)
buy back both short calls (2595 strike) at $0.30 (take profits & remove the risk)
let long calls expire "worthless"
PROFIT: $160 (in 90 minutes)
SPX closed at 2582.61
WATCH THE VIDEO HERE!
Wednesday, 1/9/2019 (Expiration Day)
WATCH THE VIDEO HERE!
Trade 1 (11:08:46 am, PT)
sell -2 Jan 9, 2019 2610 calls at $1.25 (14.62 delta)
buy +2 Jan 9, 2019 2640 calls at $0.05 ("wings")
Comments
- The Federal Reserve released its minutes at 11 am, PT
- Margin requirements: (2640 − 2610) x 2 x 100 = $6000
Trade 2 (11:30:07 am, PT)
buy back both short calls (2610 strike) at $0.20 (to remove the risk and take profits)
PROFIT #1 (short calls only): $210
Trade 3 (11:48:57 am, PT)
sell -2 new calls (2600 strike) at $1.25 (19.18 delta)
Trade 4 (12:30:18 pm, PT)
buy back second set of short calls (2600 strike) at $0.30 (to remove the risk and take profits)
PROFIT #2 (short calls only): $190
TOTAL PROFIT: $210 + $190 − $10 (cost of the two long calls) = $390 (in about 90 minutes)
Comments
- I waited until after the Fed's minutes to place my first trade (I don't like uncertainty)
- After I bought back my first set of short calls, I was able to sell another set of calls for an additional credit
- SPX closed at 2584.96, so my short calls would have been fine in the end. However, I don't like to take unnecessary risk, so I always buy back my short options before expiration if possible
WATCH THE VIDEO HERE!
Friday, 1/4/2019 (Expiration Friday)
Trade 1 (11:25:40 am, PT)
sell (to open) -1 Jan 4, 2019 2545 call option at $1.65 (delta 19.25)
Comment: The markets gapped up right at the opening bell and continued to rise. It had been a pretty strong "up" day, so I kept my trade small by selling only one contract. Selling call options is a semi-bearish strategy.
Trade 2 (12:51:07 pm, PT)
buy back call option at $0.05 (to remove the risk and take profits)
Comment: SPX closed at 2531.94 at 4 pm, ET (up 84.05).
PROFIT: $160 (in 90 minutes)
LEARN TO SELL CALL OPTIONS HERE!
Wednesday, 1/2/2019 (Expiration Wednesday)
Trade 1 (10:01:05 am, PT)
sell (to open) -2 January 2, 2019 2530 calls at $1.40 (15 delta)
Max potential profit: $280
Trade 2 (11:59:10 am, PT)
buy (to close) both calls at $0.20 (to remove the risk and take profits)
Note: SPX closed at 2510.03 at 4 pm, ET
PROFIT: $240 (in 2 hours)
Learn to SELL CALL OPTIONS here!
