6/27/2014
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).
8/4/2014 (check out the timing on this chart)
sold (to open) 10 September 2014 $187 puts at $1.78
probability of success: 70%
9/17/2014 (FOMC at 11 am, PT)
bought (to close) all 10 puts at $0.03 at 9:31 am (PT) to remove the risk
NET PROFIT: $1,734.98
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).
7/23/2014
sell (to open) 10 August 2014 $193.50 puts at $0.66
probability of success: 80%
7/31/2014 (roll to Sept)
buy (to close) 10 August 2014 $193.50 puts at $2.39
sell (to open) 10 September 2014 $190 puts at $3.16
New credit: $0.77
9/17/2014 (FOMC at 11 am, PT)
buy (to close) all 10 September 2014 $190 puts at $0.05
TOTAL NET PROFIT: $1,342.45
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).
7/25/2014 (this is a "ratio spread" which has the highest probability of success)
buy (to open) 2 August 2014 $197 puts at $1.71
sell (to open) 4 August 2014 $196 puts at $1.40 (62% probability of success)
Net credit: $1.09
8/4/2014 (close profitable debit spread)
sell (to close) 2 August 2014 $197 puts at $4.46
buy (to close) 2 August 2014 $196 puts at $3.74
Net credit: $0.72
8/6/2014 (roll to Sept to "keep the dream alive")
buy (to close) 2 August 2014 $196 puts at $3.98
sell (to open) 2 September 2014 $195 puts at $5.43
Net credit: $1.45
9/17/2014 (9:37:29 am, PT..... FOMC at 11 am, PT)
buy (to close) 2 September 2014 $195 puts at $0.15
TOTAL NET PROFIT: $581.53
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).
7/30/2014 (FP)
sold (to open) 2 August 2014 $166.50 puts at $1.03
probability of success: 65%
8/8/2014 (roll to Sept)
buy (to close) 2 August 2014 $166.50 puts at $2.79
sell (to open) 2 September 2014 $165 puts at $3.63
(received new credit of $0.84)
9/17/2014
buy (to close) 2 September 2014 $165 puts at $0.05
Here's all the math:
+1.03 (sell Aug put)
-2.79 (buy back Aug put)
+3.63 (sell Sept put)
-0.05 (buy back Sept put)
------------------------------
$1.82 x 2 x 100 = $364 (gross)
TOTAL NET PROFIT: $343.37
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).
7/25/2014
sold (to open) 10 August 2014 $190 puts at $0.41
probability of success: 87%
8/15/2014 (expiration)
SPY closed at $195.72
Success!
NET PROFIT: $395.25
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).
7/29/2014
sold (to open) 10 August 2014 $188 puts at $0.23
probability of success: 92%
8/15/2014 (expiration)
SPY closed at $195.72
Success!
NET PROFIT: $215.25
Learn to SELL PUT OPTIONS and GET PAID up front. 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).
7/22/2014 (RD)
Sold (to open) 2 August 2014 $124.50 puts at $1.23
Reasons for initiating this trade:
- probability of success: 60%
- bottom of stochastics (see chart)
8/14/2014
bought back both puts at $0.04
(this trade filled while I was still asleep!)
NET PROFIT: $228.44
THE LESSON
- On 7/22, GLD traded between $125.47 and $126.43.
- On 8/14, GLD traded between $126.13 and $126.53 (see chart).
- If I had bought 200 shares of GLD on 7/22 and sold them on 8/14, I would have broken even.
- However, by SELLING GLD PUT OPTIONS instead, I made $228.44!
----------------------------------------------
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 1-on-1 training (click here for details).
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)
