7/25/2014 (RD)
This is a ratio put spread (has the highest probability of success).
buy (to open) 3 August 2014 $197 puts at $1.61
sell (to open) 6 August 2014 $196 puts at $1.31 (62% probability of success)
The Lesson:
Why do a ratio spread on 7/25?
SPY was at the "top" of the stochastics (it's "overbought"), so it was likely to reverse back down in the near future.
See chart.
8/4/2014
I decided to sell (to close) the "debit spread" portion of the ratio spread because it was profitable on 8/4.
sell (to close) 3 August 2014 $197 puts at $3.33
buy (to close) 3 August 2014 $196 puts at $2.66
Received credit of $0.67
The Lesson:
SPY was "oversold" on 8/4 (see chart), so it's likely to reverse back up. If it does go back up, I'll lose all the profits on the debit spread.
But then......SPY may continue to drop, so the debit spread will become more profitable.
So..... sell the debit spread on 8/4 and take my profits or leave it open for the possibility of making more $$$? As traders, we're always faced with tough decisions.
As Jim Cramer would say, "Nobody ever got hurt by taking profits!"
8/8/2014 (roll to Sept)
With 6 trading days remaining, I decided to roll my ITM August puts (see chart) to September to avoid assignment and to collect another credit.
buy (to close) 3 August 2014 $196 puts at $4.20
sell (to open) 3 September 2014 $195 puts at $5.67
received new credit of $1.47
9/19/2014 (expiration)
SPY closed at $200.70, so my Sept $195 puts expired perfectly!
Here's all the math:
+1.01 (initial ratio spread)
+0.67 (closing profitable debit spread)
+1.47 (roll August to September)
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$3.15 x 3 x 100 = $945 (gross)
TOTAL NET PROFIT: $904.76
Learn to SELL PUT OPTIONS and GET PAID up front! It's easy, fun and profitable!
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8/12/2014
sell (to open) 10 September 2014 $178 puts at $0.57
probability of success: almost 90%
Why place this trade? SPY has been "oversold" and now it's on its way back up (see chart).
9/19/2014 (expiration)
SPY closed at $200.70, so my puts expired perfectly!
TOTAL NET PROFIT: $562.24
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 (details here).
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.
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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
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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).
