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.
