Trade 1 (9:38:02 am, PT) ← SPX around 2698
sell short -6 Oct 26, 2018 2715 calls at $11.30 (very nice premium!)
delta: 35.80
Trade 2 (1:01:11 pm, PT)
buy back calls at $10.40 (for a quick profit)
PROFIT: $540
Comments:
- SPX continued to rise after I sold (to open) my short call options (bad!)
- At 11:49 am (2 hours later), SPX hit a high of 2722.33 and my calls were trading at $20.20 (I had a temporary "paper loss" of $5340!) 😖😨
- At 1:01 pm, PT, I decided to buy back my calls at $10.40 and take a quick profit because I wasn't sure if Amazon's earnings and Alphabet's (Google) earnings were going to be good or bad
- Amazon's earnings and Google's earnings turned out to be bad, so SPX dropped in the after-hours market
- By 1:15 pm, PT, my call options were trading between $5.40 and $6.50 😩
- The greedy side of my brain wants to say, "I wish I had held my calls longer!"
- The conservative side of my brain says, "It's a good thing I took my profits because things could have gone the other way."
What would YOU have done in this situation??
Learn to SELL CALL OPTIONS HERE!
