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
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