Unusual Options Activity alert! Trader buys 5000 JETS call options . . . so I did the same (sort of)

Friday, 1/15/2021

sell (to open) -1 March 19, 2021  $30 call at $0.24 (probability ITM 7.56%)

buy (to open) +1 March 19, 2021  $25 call at $0.95 (probability ITM 26.54%)

Net debit:  $71

$71 = max loss if JETS closes below $25 at expiration

$429 = max profit if JETS closes above $30 at expiration (but the probability of this happening is less than 8%)

Tuesday, 2/9/2021

sell (to close) the entire call spread for a credit of $0.60

NET LOSS:  $13.64  😔

I decided to close my trade early and take a small loss.  After nearly 30 days, this trade never showed a profit.  I wasn't in the mood to keep holding and hoping.

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Options trades: SPY Near-term (30 DTE) short put options vs SPY LEAPS short put options | The results will amaze you!

If you've ever looked closely at a SPY options chain, you probably noticed that there are LOTS of expiration dates.  Some options expire within just a few days while other options expire several weeks or several months later.

Some SPY options even have expiration dates that are over one year away.  These options are called LEAPS.

Many options traders have asked me if it's "better" to trade options that have near-term expirations or options that have far-term expirations (LEAPS).

In this 4-part series, I compared the performance of a near-term short put versus a LEAPS short put.

CLICK HERE to watch all four videos.

Options trade: Bullish put trade on Walmart | credit put spread

 Tue. 12/29/2020

sell (to open) -2 Feb 5, 2021  $135 puts at $1.15 (prob ITM: 20.53%)

buy (to open) +2 Feb 5, 2021  $129 puts at $0.51 (prob ITM: 10.23%)

• Net credit: $0.64 x 2 x 100 = $128
• Max profit:  $128
• Margin: $873
• "oversold"
• 37 DTE

Thu. 2/4/2021

buy back just one of the short puts at $0.01

let the other short put and the two long puts expire "worthless"

NET PROFIT:  $124.33 (ROC: 14% in 37 days)

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Options trade: bullish put trade on Communications ETF (XLC)

Thu. 1/14/2021

sell (to open) -1 Feb 19, 2021  $62 put at $1.06

• "oversold"
• 36 DTE
• probability ITM: 31.19%

Wed. 2/3/2021

buy back short put at $0.10

• "overbought"
• 16 DTE

NET PROFIT:  $94.68

Learn to trade options.

FREE lessons here!