sell (to open) 1 August 2014 $54 put at $0.92
probability of success: 50% (I usually prefer a higher probability)
The lesson:
sell to open put options when the underlying is "oversold" (see chart)
8/6/2014
Ooops!!!! XLI dipped all the way down to its 200 EMA. (see chart)
My August short put is ITM. Now what??
8/12/2014 (roll)
XLI is heading back up (see chart).
Roll my August $54 put to September for a new credit of $0.41.
buy (to close) 1 August 2014 $54 put at $1.67
sell (to open) 1 September 2014 $54 put at $2.08
9/18/2014
buy (to close) September put at $0.05 (see chart)
TOTAL NET PROFIT: $123.36
Learn to SELL put options and GET PAID up front. It's easy, fun and profitable.
Learn on your own for FREE at www.youtube.com/user/moneyandlilia or
Pay for customized, 1-on-1 training (details here).
