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Tuesday, October 18, 2022

Options trading : Alphabet (GOOGL) semi-bullish trade

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9/12/2022

sell -1 Oct 21, 2022 $98 put at $1.10 (prob ITM 17.60%)
buy + 1 Oct 21, 2022 $57 put at $0.01 (prob ITM 0.15%)
  • GOOGL = $110.70
  • margin:  $571
  • oversold
  • 39 DTE


10/17/2022  🠈🠈  4 DTE

buy back the short put at $1.00

PROFIT:  $7.01


NOTES:

This was a difficult trade.
On 9/30/2022, the premium for the $98 put reached a high of $4.76, so I had a "paper loss" of $367 that day.

On 10/13/2022, GOOGL dropped to $94.38, so my $98 short put was almost $4.00 in-the-money (bad).

After all these challenges, I decided the best thing to do was to break even on the trade.