Options trade: SPX credit call spread (bearish trade)

Tuesday 1/22/2019 (Expiration Day)

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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!

Options trades: SPX credit call spreads (semi-bearish trades)

Friday 1/18/2019 (Expiration Friday)

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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!

Options trades: SPX short calls (bearish trades)

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 

Options trade: SPX credit call spread (bearish trade)

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!

Options trades: SPX credit call spreads post-Fed minutes

Wednesday, 1/9/2019 (Expiration Day)

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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!

Options trade: SPX short call (bearish trade)

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!

Options trade: SPX short call options (bearish trade)

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!