sell -3 August 2016 $201 puts at $2.11 (30% prob ITM)
buy +1 August 2016 $199 put at $1.77
credit received: $4.56 x 1 x 100 = $456.00
Why did I place this trade?
- stochastics in overbought region
- 7/5/2016 was a "down" day
- 45 days 'til expiration
- high probability of success
Friday, 7/8/2016 (10:34:12 am, PT)
bought back entire spread for $2.16 (debit)
PROFIT: $240 (in FOUR days!)
SUCCESS!
