7/16/2014
sold (to open) 1 August 2014 $111 put at $1.20
I got paid $120 (cash)
See my timing (chart)
8/14/2014 (see chart)
bought back the put at $0.05
(this trade filled while I was still asleep)
NET PROFIT: $107.18
THE LESSON
- IWM was trading between $113.82 and $115.09 on 7/16 (when I sold my put option).
- IWM was trading between $113.23 and $113.73 on 8/14 (when I closed my put position).
- If I had bought 100 shares of IWM on 7/16 and sold them on 8/14, I would have lost money.
- However, by SELLING an IWM PUT OPTION instead, I ended up with a NET PROFIT of $107.18!
- This is why I love SELLING PUT OPTIONS. I made money even when IWM went down.
----------------------------------------------------------------------------
Learn to SELL PUT OPTIONS. It's easy, fun and profitable.
Learn on your own for FREE (www.youtube.com/user/moneyandlilia) or pay for 1-on-1 training (click here for details).
www.moneyandlilia.com
Twitter: @lilialam
SEE YOUTUBE VIDEO (comprehensive lesson on how to manage "naked" puts that go "in-the-money")
7/9/2014 (12:16 pm, PT)
sold (to open) 6 August 2014 $113 puts at $1.33
Reasons for initiating this trade:
- probability of success: 68%
- almost at the bottom of stochastics (see chart)
- candles at the 50 EMA (possible support)
8/13/2014 (9:31:41 am, PT)
bought (to close) all 6 puts at $0.49
Reasons for closing this position:
- my short August 2014 $113 puts are FINALLY out-of-the-money (barely!!)
- two days left until expiration (two days are a long time when the strike price is barely OTM)
- almost at top of stochastics (see chart)
- TAKE PROFITS! (VERY important)
NET PROFIT: $480.68 (in 5 weeks)
THE LESSON
If I had bought 600 shares of IWM on 7/9/2014 ($116.56 average) and sold them on 8/13/2014 ($113.18 average), I would have LOST $2028 (approximately).
However, by SELLING PUT OPTIONS instead, I have a PROFIT of $480.68!
That's why I LOVE SELLING PUT OPTIONS.
On 8/1/2014, IWM traded as low as $109.86 (see chart) . My August $113 puts were "in-the-money" by nearly $3.14. If I had panicked and closed my position on 8/1, I would have ended up with a pretty large LOSS (nearly $1100).
However, because these options didn't expire until 8/15, I decided to hold them and wait. As long as the "extrinsic" value of those options were still large, I was not at risk of early assignment.
-----------------------------------------------
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 1-on-1 training (details here).
7/30/2014 (FP)
sold (to open) 8 August 2014 $165 puts at $0.64
Reasons for initiating this trade:
8/13/2014 (11:01:20 am, PT)
DIA trading around $166.46 (see chart)
buy (to close) all 8 puts at $0.22
NET PROFIT: $307.68
Reasons for closing this position:
- take profits (VERY important)
- remove the risk from the portfolio
THE LESSON:
- When I initiated the trade on 7/30/2014, I thought the 50 EMA could be the "support" (see chart)
- Clearly, I was wrong. DIA "broke support" and dropped all the way down to $163-ish on 8/5/2014 (see chart)
- My DIA Aug $165 puts were "in-the-money" for quite awhile. Closing my position at that time would have resulted in a large LOSS. Don't panic when your short puts go ITM. There's plenty of time, so wait.....
- I decided to close my position on 8/13/2014 because DIA was touching the 50 EMA which could be a new "resistance" (see chart).
- I normally wait until the stochastics are at the top before I buy back my short puts. However, in this case, because I only have two days remaining (until expiration) and there's a lot of volatility, it's best to close the position and TAKE PROFITS.
---------------------------------------------------------
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 1-on-1 training (e-mail moneyandlilia888@gmail.com).
www.moneyandlilia.com
Twitter: @lilialam
7/22/2014 (10:29 am)
[click here to see my timing on a chart]
sold (to open) 4 August 2014 $124 puts at $1.05
received $420 cash
Reasons for initiating this trade:
- bottom of stochastics ("oversold") (see chart)
- price of GLD was tucked in between the two moving averages (see chart)
- probability of success: 65%
8/6/2014 (10:44 am)
bought back all 4 puts at $0.45
NET PROFIT: $219.79 (in two weeks)
Reasons for closing this trade:
- GLD has been pretty volatile the last two weeks
- my strike price is just barely out-of-the-money
- 9 days left until expiration (anything can happen)
- TAKE PROFITS!
LESSONS:
I normally close (buy to close) my short puts when the stochastics are at the top, but in this case, with 9 days left, I decided to just take my profits and remove the risk from my portfolio.
GLD was trading between $125.47 and $126.43 on 7/22/2014 [when I sold (to open) my puts]. If I had BOUGHT 400 shares of GLD instead, I would have broken even on 8/6/2014 (when I closed my puts).
That's why I prefer to SELL PUT OPTIONS. I make money even if the underlying goes sideways.
-----------------------------------------------------
Learn to SELL PUT OPTIONS. It's easy, fun and profitable.
Learn on your own for FREE (www.youtube.com/user/moneyandlilia) or
Pay for 1-on-1, personalized training (moneyandlilia888@gmail.com).
This YouTube video (click here) demonstrates how I (Lilia) closed my profitable options trades on Expiration Friday. I also explain the timing for each strategy and how I selected the strike prices.
The following 3 trades were done in my options class.
TRADE 1 (sell "naked" put on GLD)
6/2/2014 (check out my impeccable timing!)
sell (to open) 1 July 2014 $117 put at $1.27
7/18/2014 (exp)
let this put expire
Gross profit: $127
TRADE 2 (buy "debit put spread" on RAD)
6/6/2014 (see timing on chart)
buy (to open) 10 July 2014 $8 puts at $0.55
sell (to open) 10 July 2014 $7 puts at $0.25
Net debit: $0.30 or $300 ($0.30 x 10 x 100 = $300)
7/18/2014 (exp)
sell (to close) the July $8 puts only at $0.90
let the July $7 puts expire
Gross profit: $600
TRADE 3 (buy "calendar spread" on XLI)
6/9/2014 (check out my impeccable timing!)
buy (to open) 1 Sept 2014 $54 put at $1.08
sell (to open) 1 July 2014 $54 put at $0.40
Net debit: $0.68 or $68 ($0.68 x 1 x 100 = $68)
7/18/2014 (exp)
sell (to close) Sept $54 put at $1.17
let July $54 put expire
Gross profit: $49 (ROC = 72% in 5 weeks) .... that's right....72% ROC!
----------------------------------------------------
Learn to trade OPTIONS. It's easy, fun and PROFITABLE!
Learn on your own for FREE (www.youtube.com/user/moneyandlilia) or
Pay for customized, 1-on-1 training (moneyandlilia888@gmail.com)
6/13/2014
sell (to open) 10 July 2014 $184 puts at $0.64
(received $640 cash)
probability of success: 86.48%
7/18/2014 (exp)
SPY closed above $184. Success! Let puts expire.
NET PROFIT: $632.24
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 (moneyandlilia888@gmail.com).
6/10/2014
sell (to open) 10 July 2014 $185 puts at $0.50
(received $500 cash)
probability of success: 88.63%
7/18/2014 (exp)
SPY closed above $185. Success! Let puts expire.
NET PROFIT: $492.24
-------------------------------------------------------------
Learn to SELL PUT OPTIONS. 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 (moneyandlilia888@gmail.com).
6/23/2014
sell (to open) 10 July 2014 $183 puts at $0.21
probability of success: 93.61%
7/18/2014 (exp)
SPY closed above $183. Success! Let puts expire.
NET PROFIT: $202.25
Learn to SELL PUT OPTIONS and GET PAID up front. It's easy, fun and profitable!
Learn for FREE at www.youtube.com/user/moneyandlilia or
Pay for customized, 1-on-1 training (moneyandlilia888@gmail.com).
6/24/2014
+5 July 2014 $195 puts at $1.54
-10 July 2014 $194 puts at $1.23
Net credit: $0.92
7/18/2014 (exp)
buy (to close) 5 July $194 puts at $0.04 (to remove the risk)
NET PROFIT: $421.24
Lessons:
- on 6/24/2014, the July $194 put had a 38% probability of expiring ITM
- early in the morning on 7/18/2014 (exp), the July $195 put was trading around $0.07; I decided to sacrifice the small gain for the possibility of making a little more money later that day (if SPY goes down to $194)
-------------------------------------------------------------
Learn to SELL PUT OPTIONS. 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 (moneyandlilia888@gmail.com).
6/24/2014 (RD)
+4 July 2014 $193 puts at $1.42
-8 July 2014 $192 puts at $1.17
Net credit: $0.92 or ($0.92) (4) (100) = $368 cash received (gross)
7/16/2014 (3 days before exp)
buy (to close) July $192 puts at $0.03
TOTAL NET PROFIT: $338.62
LESSONS:
- on 6/24/2014, the July $192 puts had a 33% chance of expiring ITM
- I closed the July $192 puts on 7/16 to remove the risk from my portfolio
- if SPY closes below $192 on Friday, 7/18/2014, I will make another $400 on this trade
----------------------------------------
Learn to trade PUT OPTIONS. 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 (moneyandlilia888@gmail.com)
6/24/2014 (FP)
sold (to open) 2 July 2014 $191 puts at $0.73
probability of success: 70%
7/16/2014 (3 days before exp)
buy (to close) both options at $0.03
NET PROFIT: $130.44
-----------------------------------------
Learn to SELL PUT OPTIONS. It's easy, fun and profitable!
Learn on your own for FREE (www.youtube.com/user/moneyandlilia) or
Pay for customized, 1-on-1 training (moneyandlilia888@gmail.com)
6/11/2014 (FP)
sell (to open) 4 July 2014 $165 puts at $1.13
probability of success: 70%
7/15/2014 (4 days before exp)
buy (to close) all puts at $0.05
NET PROFIT: $420.83 (ROC 3.34% in 1 month)
--------------------------------------------------------
Learn to SELL PUT OPTIONS. It's easy, fun and profitable!
Learn on your own for FREE (www.youtube.com/user/moneyandlilia) or
Pay for customized, 1-on-1 training (moneyandlilia888@gmail.com)
6/11/2014 (RD)
sell (to open) 2 July 2014 $165 puts at $1.13
probability of success: 70%
7/15/2014 (4 days before exp)
buy (to close) both puts at $0.05
NET PROFIT: $206.43 (ROC 3.28% in 1 month)
-----------------------------------------------------
Learn to SELL PUT OPTIONS. It's easy, fun and profitable!
Learn on your own for FREE (www.youtube.com/user/moneyandlilia) or
Pay for customized, 1-on-1 training (moneyandlilia888@gmail.com)
5/29/2014
Sold (to open) 1 July 2014 $118 put for $1.31
(received $131 cash)
Reasons for placing trade:
- GLD was "oversold" according to the stochastics (see chart)
- probability of success: 67%
6/27/2014
bought (to close) GLD put for $0.05 (see chart)
NET PROFIT: $118.18 (in 1 month)
LESSONS:
- Sell (to open) put options when the underlying is "oversold" (check out my impeccable timing!)
- Choose put options that are out-of-the-money (OTM)
- Once your opening trade has filled, go back into your account right away and submit a "buy to close" GTC order at $0.05
- Sit back and WAIT......
WARNING: We're not aiming for "home runs" when trading options ...... we just want to "get on base" EVERY TIME!
-----------------------------------------------------------
Learn to SELL PUT OPTIONS! It's easy, fun and PROFITABLE!
Learn on your own for FREE at www.youtube.com/user/moneyandlilia or.....
Pay for private, 1-on-1 training (click here for details).
5/14/2014 (RD)
sold (to open) 2 June 2014 $187 puts at $2.03
(received $406 cash)
probability of success: 62%
6/20/2014 (expiration)
SPY closed at $195.94. Perfect!
NET PROFIT: $396.49
------------------------------------
Learn to trade OPTIONS. It's easy, fun and profitable!
Learn on your own for FREE at www.youtube.com/user/moneyandlilia or.....
Pay for private, 1-on-1 training (contact moneyandlilia888@gmail.com).
5/14/2014 (FP)
sold (to open) 1 June 2014 $187 put at $2.06
(received $206 cash)
probability of success: 62%
6/20/2014 (expiration)
SPY closed at $195.94. Perfect!
NET PROFIT: $197.26
------------------------------------------------------
Learn to trade OPTIONS! It's easy, fun and profitable!
Learn on your own for FREE at www.youtube.com/user/moneyandlilia or ....
Pay for private, 1-on-1 training (contact moneyandlilia888@gmail.com).
3/26/2014 (RD)
+1 January 2015 $115 call at $7.70 (ATM call)
-1 January 2015 $115 put at $9.05 (ATM put)
Net credit: $1.35
Reason for initiating trade: "oversold"
(see chart)
6/19/2014
sell to close call option at $7.12
buy to close put option at $6.27
Net credit: $0.85
Reason for closing trade: "overbought"
(see chart)
TOTAL NET PROFIT: $200.93
LESSONS:
On 4/2/2014 (see chart), IWM was "overbought" again. If I had closed my position that day ($1.94 credit), my gross profit would have been $329 in just SIX days!! But no....I waited instead.... and IWM took a dive. So, the LESSON is: TAKE YOUR PROFITS!!! (especially if you're trading long options)
-------------------------------------------------
Learn to trade options. It's easy, fun and profitable.
Learn on your own for FREE at www.youtube.com/user/moneyandlilia or....
Pay for private, 1-on-1 training (contact moneyandlilia888@gmail.com).
6/4/2014 (RD)
sold (to open) 2 July 2014 $117 puts for $1.17
(I received $234 in cash)
Reasons for placing this trade:
- Probability of success: 68%
- "Oversold" (see chart)
6/19/2014
bought (to close) both puts for $0.10
(I spent $20)
Reasons for closing this position:
- GLD rose 3% today.....a lovely surprise!
- I've collected 91% of the maximum profit in just 2 weeks
- "Overbought" (see chart)
NET PROFIT: $194.99 (in 2 weeks)
LESSONS:
Note the IMPECCABLE TIMING of my opening and closing trades! Obviously, I don't have a crystal ball, but I aim to SELL PUTS at the bottom of the stochastics and I aim to buy them back at the top of the stochastics. It's that simple!
Learn to SELL PUT OPTIONS! It's easy, fun and PROFITABLE!!
Learn on your own for FREE at www.youtube.com/user/moneyandlilia or....
Pay for private, 1-on-1 training (contact moneyandlilia888@gmail.com).
5/20/2014
sold (to open) 2 June 2014 $160 puts for $1.15
(I received $230 in cash)
Reasons for placing this trade on 5/20:
- Bottom of stochastics ("oversold") (see chart)
- Dow dropped over 100 points which brought DIA down to the 50 EMA (see chart)
- Probability of success: 70%
6/17/2014 (4 days left until expiration)
bought back puts for $0.02
NET PROFIT: $217.39
-------------------------------------------------
Learn to SELL PUT OPTIONS for FREE at www.youtube.com/user/moneyandlilia or....
Pay for private, 1-on-1 training (contact moneyandlilia888@gmail.com).
4/25/2014 (Fri)
+4 June 2014 $178 puts at $1.69
-8 June 2014 $177 puts at $1.52 (probability ITM = 23%)
Net credit: $1.35
6/11/2014 (Wed)
buy (to close) 4 June 2014 $177 puts at $0.03
Let the 177/178 debit put spread expire on June 20 (unless SPY goes down)
NET PROFIT (as of June 11): $511.57
Note: if SPY dips below $178 on June 20, my debit put spread will become profitable.
-------------------------------------
Learn to trade options.
Learn on your own for FREE at www.youtube.com/user/moneyandlilia or.....
Pay for private, one-on-one training (inquire at moneyandlilia888@gmail.com).
