SPX credit call spread (options)

Friday, 7/13/2018 (EXPIRATION DAY)

Trade 1 (9:58:34 am, PT) 

buy +4 July 13, 2018  2825 calls at $0.06 ("wings")
sell −4 July 13, 2018  2805 calls at $2.36 ← 44.78 delta

• net credit:  $2.30 x 4 x 100 = $920 (max profit)
• margin:  $7429

Trade 2 (10:49:26 am, PT)

buy back the short calls (2805 strike) at $1.00 to take profits


Trade 3 (10:55:18 am, PT)

SPX went back up, so I sold (to open) the same calls (2805 strike) again at $1.20 (this time the delta was 31)


Trade 4 (12:47:20 pm, PT)

• buy back the short calls (2805 strike) at $0.10 to take profits and remove the risk
• let the 4 long calls (2825 strike) expire at 1:00 pm, PT

TOTAL PROFIT:  $960 (in 3 hours) ← this is more than the initial "max profit" of $920

😃
LEARN TO SELL CALL OPTIONS HERE!

SPX Iron Condor (options)

Friday, 7/6/2018 (EXPIRATION DAY)

Trade 1 (10:29:07 am, PT)

sell -4 July 6, 2018  2755 puts at $1.30 (delta 24.22)
buy +4 July 6, 2018  2720 puts at $0.05 ("wings")

• net credit: $1.25 x 4 x 100 = $500 (max profit)
• margin:  $13,559
• this is a semi-bullish trade

Trade 2 (12:25:29 pm, PT)

buy +4 July 6, 2018  2775 calls at $0.05 ("wings")
sell -4 July 6, 2018  2765 calls at $1.00 (delta 37.41)

• net credit:  $0.95 x 4 x 100 = $380 (max profit)
• this is a semi-bearish trade

Trade 3 (12:41:43 pm, PT)

• buy back 2765 calls at $0.10 to remove the risk
• let long calls (2775 strike) expire worthless

Trade 4 (12:56:58 pm, PT)

• buy back 2755 puts at $0.10 to remove the risk
• let long puts (2720 strike) expire worthless

Comments:

• at 12:27 pm (PT), when SPX was at 2764.41, I could have bought back my short puts (2755 strike) at $0.15 and be done, but I got greedy and didn't want to pay $0.15 ($60 for 4 contracts) ..... 
• BAD DECISION!  😱😱

• suddenly SPX started dropping and hit a low of 2755.16 at 12:50 pm (PT) ..... that's only 0.16 from my short strike of 2755  😖😰😲

• at this point, the premium for the 2755 put jumped to $1.20 and my lovely profit of $440 (at 12:27 pm) suddenly turned into a profit of only $20 😭😭😭

• STRESS!  STRESS!  STRESS!

• I was VERY lucky that SPX reversed back up after hitting the low of 2755.16 and I was able to buy back those short puts (2755 strike) at $0.10 😅😅

TOTAL PROFITS:  $800  😁

IWM put options

Tuesday, 6/26/2018 (11:11:37 am, PT)

sell -2 July 20, 2018  $160 puts at $1.02

Stats:

• delta:  22.57
• stochastics in oversold region
• 24 days 'til expiration

Thursday, 7/5/2018 (12:50:17 pm, PT)

buy back puts at $0.50 (50% of max profit)

PROFIT:  $104

Learn to SELL put options HERE!  FREE lessons!

SPX credit call spread (options)

Wed. 6/20/2018 (9:42:13 am, PT)

sell -2 June 20, 2018  2775 calls at $1.95

• probability ITM:  37% (a bit high, but acceptable)
• I already had two long calls ("wings") (June 22  2845 calls) that were purchased for $0.30 on June 15 
• margin:  $14,000
• expiration:  1:00 pm (PT), June 20 (same day)

Wed. 6/20/2018 (11:57:19 am, PT)

buy back both short calls (2775 strike) at $0.10 to remove the risk

PROFIT:  $370 (in 2.25 hours)

Learn to SELL call options HERE

SPX credit put spread (options)

Mon. 6/11/2018 (9:35:09 am, PT)

sell -2  June 11, 2018  2785 puts at $1.20 (29 delta)
buy +2 June 11, 2018  2760 puts at $0.05

• net credit (max profit):  $1.15 x 2 x 100 =  $230
• margin:  $5000
• options expire at 1:00 pm (PT)

Mon. 6/11/2018 (12:06:40 pm, PT)

buy back both short puts (2785 strike) at $0.50
let long puts (2760 strike) expire worthless ($10 "sacrifice" to create spread)

PROFIT:  $130

COMMENT:  
It's a GOOD thing I bought back my short puts at $0.50 because SPX closed at 2782 and my short puts would have ended up in-the-money!!  😨

LEARN TO SELL PUT OPTIONS HERE!

SPX credit put spread (options)

Wed. 5/30/2018 (9:42:23 am, PT)

sell -2  May 30, 2018  2710 puts at $0.85
buy +2  May 30, 2018  2690 puts at $0.10

• intraday stochastics:  oversold
• margin:  $4,000
• net credit (max profit):  $0.75 x 2 x 100 =  $150
• short put (2710) delta:  14.50
• expiration:  1 pm (PT)

Wed. 5/30/2018 [12:07 pm (PT) and 12:17:53 pm (PT)]

• bought back short puts at $0.05 to remove the risk
• let long puts (2690) expire at 1 pm (PT)
• SPX closed at 2724.01

PROFIT:  $140 (in about 2.5 hours)
ROC:  3.40% (in about 2.5 hours)

Learn to SELL puts HERE!

SPX short call option

Fri. 5/25/2018 (expiration)

sold -1 May 25, 2018  2720 call at $1.10

 W A R N I N G 

SPX closed at 2721.33 at 1 pm (PT) today (5/25), so my short call was only $1.33 in-the-money.  However, right before the closing bell, the "bid" was $1.85 and the "ask" was a whopping $2.90!!!!  UNBELIEVABLE!!!

So .... instead of taking a larger-than-necessary loss by buying back my ITM short call, I simply let the option expire in-the-money (pretty unnerving, I must admit).

Since I collected $1.10 when I sold (to open) the call and it ended up $1.33 ITM, my loss will be around $23 rather than $180 (if I had bought back the call).


The trading rules for "index" options (SPX, RUT, VIX, etc) and the trading rules for "equity" options (SPY, IWM, etc.) are VERY DIFFERENT.  Please make sure you thoroughly understand these rules before trading with real money.

SPX credit call spread (options)

Monday, 5/21/2018 (9:12:23 am, PT)

buy +4 May 21, 2018  2755 calls at $0.05
sell -4 May 21, 2018  2735 calls at $2.00 (28 delta)

net credit (max profit):  $1.95 x 4 x 100 =  $780
expiration:  1 pm (PT)


Monday, 5/21/2018 (12:33 pm, PT)

buy back short calls (2735) at $0.10 to remove the risk
let long calls (2755) expire

PROFIT:  $740 (in 3.5 hours) 😀

Learn to SELL call options here

Procter Gamble (PG) Put Options

Tue. 5/1/2018 (12:23:35 pm, PT)

sell -1 June 15, 2018  $70 put at $0.73

• stochastics: oversold
• 52-week low:  $71.92
• probability ITM at exp:  32.27%
• max profit:  $0.73 x 1 x 100 = $73

Mon. 5/21/2018 (12:45:13 pm, PT)

buy back put at $0.16

PROFIT:  $57

Comments:

I originally intended to own PG stock at $70/share (i.e., I was OK with assignment), which is the reason I chose the strike price of $70.  After 21 days, however, I was able to close my option trade at a profit, so I changed my mind about the possibility of getting assigned at $70.

Coca Cola (KO) Put Options

Thu. 5/3/2018 (11:23:32 am, PT)

sold -1 June 8, 2018  $41 put at $0.46

• stochastics: oversold
• probability ITM at expiration:  36%
• max profit:  $0.46 x 1 x 100 = $46
• days 'til expiration:  36

Mon. 5/21/2018 (12:44:22 pm, PT)

buy back put at $0.10

PROFIT:  $36

Comments:

I initially intended to take assignment at $41 on June 8.  However, 18 days later, I was able to buy back my put at only 10 cents and close my trade for a profit, so that's what I did.

SPX credit call spread

Friday, 5/18/2018 (9:52:12 am, PT)

buy +4 May 18, 2018  2740 calls at $0.10 (debit)
sell -4 May 18, 2018  2720 calls at $1.40 (credit)

• stochastics:  overbought region
• expiration:  1:00 pm (PT)
• net credit (max profit):  $520
• margin:  $8000
• delta of short call (2720):  30

Friday, 5/18/2018 (12:48:20 pm, PT)

buy back short calls (2720) at $0.05 to remove the risk

Comments:

• my closing order at $0.05 FINALLY filled at 12:48:20 pm (darn market makers!)
• let the long calls (2740) expire
• SPX closed at 2712.97

PROFIT:  $500 (in 3 hours)

LEARN TO SELL CALL OPTIONS HERE

SPX credit call spread

Wednesday, 5/16/2018 (10:01:20 am, PT)

buy +4 May 16, 2018  2745 calls at $0.10 (debit)
sell -4 May 16, 2018  2730 calls at $1.50 (credit)

• expiration at 1 pm (PT)
• short call (2730) delta:  29.42
• net credit (max profit):  $1.40 x 400 = $560
• margin:  $6000
• stochastics: overbought region

Wednesday, 5/16/2018 (12:11:40 pm, PT)

• buy back short calls (2730) at $0.10 to remove the risk
• let long calls (2745) expire ($40 sacrifice)

PROFIT:  $520 (in 2 hours, 10 minutes)  😀

Learn to SELL CALL OPTIONS HERE!

SPX credit call spread

Monday, 5/14/2018 (10:11:44 am, PT)

buy +3 May 14, 2018  2750 calls at $0.05
sell -3 May 14, 2018  2735 calls at $1.55

• net credit (max profit):  $1.50 x 300 =  $450
• stochastics in overbought region
• short (2735) call delta:  30
• margin:  $4500
• 3 hours left until expiration

Monday, 5/14/2018 (12:39:57 pm, PT)

buy back all short (2735) calls at $0.10 to remove the risk
let long (2750) calls expire

PROFIT:  $420 (in 2.5 hours)
return on capital:  9.33% (in 2.5 hours)

Learn to SELL call options HERE!

SPX credit call spread

Monday, 5/14/2018 (10:17:15 am, PT) FP

buy +3 May 14, 2018  2745 calls at $0.13
sell -3 May 14, 2018  2740 calls at $0.48

• net credit (max profit):  $0.35 x 300 = $105
• delta for short (2740) call:  13
• margin:  $1500 
• expiration:  1:00 pm, PT

Monday, 5/14/2018 (12:32:10 pm, PT)

buy back all short (2740) calls at $0.05 to remove the risk
let long (2745) calls expire worthless

PROFIT:  $90.00
Return on capital:  6% (in almost 3 hours)

Learn to SELL call options HERE!

SPX Credit Call Spread

Friday, 5/11/2018 (9:51:41 am, PT)

buy +2 May 11, 2018  2750 calls at $0.10
sell -2 May 11, 2018  2725 calls at $3.40

• net credit (max profit):  $3.30 x 200 =  $660
• margin:  $5000
• delta of short calls (2725):  48.63 (risky!!)
• stochastics:  overbought
• expiration:  1 pm (PT)

Friday, 5/11/2018 (12:57:50 pm, PT)

• buy back short calls (2725) at $0.60
• let long calls (2750) expire

PROFIT:  $540 (in 3 hours)

COMMENTS:

It's a good thing I bought back those short calls at $0.60 because they would have ended up ITM at 1 pm (expiration)!!!!

SPX closed at 2727.72 at expiration.

When you're trading short options, it's REALLY important to watch the charts carefully so you can make informed decisions.  Do NOT hold your short options until the last minute if it looks like they may end up ITM.  Just spend some money and buy back your short options!!

LEARN TO SELL OPTIONS HERE

SPX Credit Call Spread

Friday, 5/11/2018 (9:55 am, PT) FP

buy +2  May 11, 2018  2750 calls 
sell -2  May 11, 2018  2730 calls

• net credit (max profit):  $1.35 x 200 =  $270
• 3 hours left until expiration
• short call (2730) delta =  25.57
• margin requirement:  $4,000

Friday, 5/11/2018 (12:45:26 pm, PT)

buy back both short calls (2730) at $0.20 to remove the risk
let long (2750) calls expire worthless

PROFIT:  $230 (in 3 hours)
Return on capital:  5.75% (in 3 hours)

Learn to SELL call options HERE!

SPX credit call spread

Wed. 5/9/2018 (10:41:02 am, PT)

buy +3 May 9 2018  2720 calls at $0.10
sell -3 May 9 2018  2705 calls at $1.20

• net credit (max profit):  $1.10 x 3 x 100 =  $330
• short call (2705) delta:  23
• expiration:  1 pm (PT)
• margin:  $4500

Wed. 5/9/2018 (12:38:07 pm, PT)

buy back short calls (2705) at $0.05 to remove the risk

PROFIT:  $315

Learn to SELL call options HERE

SPX Credit Call Spreads

Wednesday, 5/9/2018 (11:43:25 am, PT) FP

buy +3 May 9, 2018  2715 calls at $0.13
sell -3 May 9, 2018  2705 calls at $1.08

• net credit (max profit):  $0.95 x 300 = $285
• short call (2705) delta:  23.25
• margin requirement:  $3,000
• 1 hour, 15 minutes left until expiration

Wednesday, 5/9/2018 (12:38:07 pm, PT)

buy back all short (2705) calls at $0.05 to remove the risk
let long (2715) calls expire worthless

PROFIT:  $270 (in 1 hour)
Return on capital:  9% (in 1 hour)

Learn to SELL call option HERE!

SPX CREDIT PUT SPREAD

Friday, 5/4/2018 (9:52:06 am, PT)

sell to open -2 May 4, 2018  2650 puts at $2.15
buy to open +2 May 4, 2018  2605 puts at $0.10

Facts:

• credit:  $2.05 = $410 max profit
• delta for short put:  28.42 (> 70% chance of success)
• margin requirement:  $9000
• expiration day:  May 4 (same day)

Why did I place this trade?

• SPX was trending up in the morning (strong trend)
• this is a same-day trade to take advantage of theta time decay

Friday, 5/4/2018 (12:41:37 pm, PT)

buy to close short puts at $0.05
let long puts expire worthless (sacrifice of $20)

Note:  SPX closed at 2663.42

TOTAL PROFIT:  $400 (in 3 hours)  .....  4.40% ROC

LEARN TO SELL PUT OPTIONS

CLICK HERE

SPX credit call spread

Wed. 5/2/2018 (10:20:03 am, PT)

buy +1 May 2, 2018  2685 call at $0.12
sell -1 May 2, 2018  2665 call at $1.37

• stochastics:  overbought
• FOMC conference call at 11 am (PT)
• expiration:  1 pm (PT)
• net credit (max profit):  $1.25 x 1 x 100 =  $125
• delta of short call (2665):  19
• margin:  $2000

Wed. 5/2/2018 (12:03:50 pm, PT)

• buy back short call (2665) at $0.05
• let long call (2685) expire

PROFIT:  $120

Learn to SELL call options here