Options trade: SPX credit call spread (bearish trade)

Friday 10/5/2018 (Expiration Friday)

Trade 1 (9:53:29 am, PT)

buy +6 Oct 5, 2018  2905 calls at $0.10  ←  cheap wing
sell -6 Oct 5, 2018  2890 calls at $1.40 ←  18 delta

net credit:  $1.30 x 6 x 100 =  $780 (max profit)


Trade 2 (12:57:13 pm, PT)

buy back all 6 short calls (2890) at $0.10 to remove the risk

PROFIT:  $720 (in 3 hours)

WATCH THE VIDEO HERE!

SPX credit call spread (options)

Monday, 10/1/2018 (Expiration Monday)

Trade 1 (10:16:44 am, PT)  ←  SPX between 2928.40 & 2929.20

buy +6 Oct 1, 2018  2950 calls at $0.05  ←  cheap wings
sell -6 Oct 1, 2018  2930 calls at $1.55  

net credit:  $1.50 x 6 x 100 =  $900 (max profit)
buying power reduction:  ($12,000)


Trade 2 (12:26:25 pm, PT)

buy back short calls (2930) at $0.10 to take profits and remove the risk

PROFIT:  $840 (2 hours, 10 minutes)

Learn to SELL credit call spreads here!

SPX credit call spread (options)

Friday, 9/28/2018 (Expiration Friday)

Trade 1 (10:05:47 am, PT)  ←  SPX @ 2914.54

buy +6 Sept 28, 2018  2945 calls at $0.05 ← cheap wings
sell -6 Sept 28, 2018  2920 calls at $1.80  ←  29.70 delta

• net credit:  $1.75 x 6 x 100 =  $1050 (max profit)
• buying power reduction:  ($15,000)

Trade 2 (12:52:01 pm, PT)

buy back all 6 short calls (2920) at $0.05 to take profits and remove the risk

PROFIT:  $1020 (3 hours)

Note: SPX closed at 2913.98

Learn to SELL call spreads here!

SPX credit put spread (options)

Friday, 9/28/2018 (Expiration Friday)

Trade 1 (9:00:05 am, PT)  ←  SPX @ 2916.63

sell -4 Sept 28, 2018  2895 puts at $0.70  ←  9 delta (safe)
buy +4 Sept 28, 2018  2850 puts at $0.05 ←  cheap wings

net credit:  ($0.65) (4) (100)  =  $260 (max profit)
buying power reduction:  (2895 − 2850) (4) (100) = ($18,000)


Trade 2 (12:41:34 pm, PT)

buy back all 4 short puts (2895) at $0.05 to take profits and remove the risk

PROFIT:  $240 (3 hours, 41 minutes)

Note:  SPX closed at 2913.98

Learn to SELL put spreads here!

SPX options: $1122 profit in 3.5 hours

Monday 9/24/2018 (Expiration Monday)

Trade 1 (9:27:08 am, PT)  ←  SPX @ 2915.81

buy +6 Sept 24, 2018  2935 calls at $0.05 (cheap wings)

sell -6 Sept 24, 2018  2920 calls at $1.25 ← 21 delta

• net credit:  $1.20 x 6 x 100 =  $720 (max profit)
• buying power reduction:  $9,000

Trade 2 (12:24:11 pm, PT)  ←  SPX @ 2920

sell -6 Sept 24, 2018  2920 puts at $1.35  ←  50 delta
buy +6 Sept 24, 2018  2910 puts at $0.05 (cheap wings)

• net credit:  $1.30 x 6 x 100 =  $780 (max profit)
• buying power reduction:  none

After I added the vertical put spread, I ended up with the following position:
a "short straddle with wings"

long +6 Sept 24, 2018  2935 calls at $0.05
short -6 Sept 24, 2018  2920 calls at $1.25
short -6 Sept 24, 2018  2920 puts at $1.35
long +6 Sept 24, 2018  2910 puts at $0.05


At the Closing Bell .....

SPX closed at 2919.37 ("settlement value")

My entire vertical call spread was fine, but my short puts ended up in-the-money. 😶

CLICK HERE to find out what happened!

PROFIT:  $1122 (in 3.5 hours)

IWM put options

Wednesday, 9/19/2018 (12:06:49 pm, PT)

sell -5 Oct 19, 2018  $165 puts at $1.16

Why did I place this trade?

• it's a "down" day
• stochastics in oversold region
• 29 days 'til expiration
• 26 delta

Thursday, 9/20/2018 (11:10:31 am, PT)

buy back all 5 puts at $0.71 

Why did I place this trade?

• take profits (37% of max profit in ONE day)
• remove the risk (of assignment)
• free up the capital

PROFIT:  $225 (in ONE day)


Comments:

Don't be afraid to sell put options on a "down" day (especially if the stochastics are in the oversold region).

Buy back your short puts quickly when there's a big "up" day.

FREE LESSONS HERE!  LEARN TO SELL PUT OPTIONS!

SPX credit put spread (options)

Monday, 9/17/2018 (Expiration Day)

Trade 1 (11:45:23 am, PT)

sell -4 Sept 17, 2018  2890 puts at $0.40
buy +4 Sept 17, 2018  2875 puts at $0.05 (cheap wing)


Why did I place this trade?

It was late in the day and SPX appeared to stabilize around 2895.


Comments:

At 12:54 pm (PT), SPX was trading around 2886, so my short put (2890) was in-the-money (ITM) with only 4 minutes remaining.  It was time to ROLL my short puts to the next cycle (9/19/2018 expiration).  

Simply buying back the short puts without rolling or allowing them to expire ITM would have resulted in a loss of over $1000.


Trade 2 (12:54:55 pm, PT) ← ROLL

buy to close +4 Sept 17, 2018  2890 puts at $3.46
sell to open -4 Sept 19, 2018  2885 puts at $9.21

The roll gave me a new credit of $5.75

Then I had to buy (to open) 4 new wings with a Sept 19, 2018 expiration:
+4  Sept 19, 2018  2800 puts at $0.95 (debit)


Tuesday, 9/18/2018 (7:43:24 am, PT)

my preset buy-to-close order filled at $2.00

I'm going to leave open the 4 long puts ("wings") so I can use them again on 9/19/2018 (for my next vertical put spread).  Most likely they will expire worthless on 9/19/2018.


PROFIT:   $1260 (one day)

Learn to SELL PUT OPTIONS HERE!

QQQ put options

Wed. 9/12/2018 (11:00:26 am, PT) (QQQ at $182)

sell -4 Oct 19, 2018  $177 puts at $2.07

Why did I place this trade?

• stochastics in oversold region
• down day
• attractive premiums
• delta 31.54

Thu. 9/13/2018 (11:06:29 am, PT) (QQQ up $2.00)

buy back all 4 puts at $1.37

Why did I close this trade?

• I made 33.16% of max profit in one day (ahead of schedule)
• take quick profits
• remove the risk
• free up the capital

PROFIT:  $280 (in ONE day)

Learn to SELL put options here!

SPX credit put spread (options day-trade)

Wed. 9/12/2018 (EXPIRATION DAY)

Trade 1 (10:18:05 am, PT)

sell −4 Sept 12, 2018  2880 puts at $0.80 ← 19.40 Delta
buy +4 Sept 12, 2018  2855 puts at $0.05 ← cheap "wing"

• SPX was trading near 2886 when I placed this trade
• buying power reduction:  ($10,000)

Trade 2 (12:27 pm, PT)

buy back all 4 short puts (2880) at $0.05 to remove the risk
let the long "wings" (2855) expire worthless

PROFIT:  $280

CLICK HERE TO WATCH THE VIDEO

SPX credit put spread (options)

Wednesday, 8/29/2018 (Expiration Wednesday)

Trade 1 (10:20:01 am, PT) ← SPX trading around 2913

sell -4 August 29, 2018  2910 puts at $1.00  ←  delta 27.30
buy +4 August 29, 2018  2895 puts at $0.05 (cheap wings)


Trade 2 (12:45:13 pm, PT)

buy back short puts (2910) at $0.05 (to remove the risk)
let long puts (2895) expire worthless

PROFIT:  $380 (in 2.5 hours)

Learn to SELL put options here!  FREE lessons!

SPX credit put spread (options)

Monday, 8/27/2018 (Expiration Day)

Trade 1 (10:33:36 am, PT)

sell -4 August 27, 2018  2890 puts at $0.70
buy +4 August 27, 2018  2870 puts at $0.05 (cheap "wing")

Stats:

• short put delta = 19.60
• SPX trading at 2895.53
• net credit (max profit) = $0.65 x 4 x 100 =  $260

Trade 2 (12:42:58 pm, PT)

buy back all short puts (2890) at $0.05

PROFIT:  $240 (in approx. 2 hours)

Note:  SPX closed at 2896.74 at 1 pm, PT

Learn to SELL PUT OPTIONS!

FREE lessons HERE!

SPX credit put spread (options)

Friday, 8/24/2018 (Expiration Friday)

Trade 1 (8:29:32 am, PT) ← SPX trading around 2872

sell -4 August 24, 2018  2865 puts at $1.05 (delta 21.75)
buy +4 August 24, 2018  2835 puts at $0.05 (cheap wings)


Trade 2 (9:04:16 am, PT)

buy back short puts (2865) at $0.50 (to take profits)


Trade 3 (9:33:09 am, PT) ← SPX trading around 2874.50)

sell again -4 August 24, 2018  2865 puts at $0.55 (delta 12.58)


Trade 4 (12:23:18 pm, PT)

buy back short puts (2865) at $0.05 (to remove the risk)

PROFIT:  $400 (in 3.5 hours)

Note:  SPX closed at 2874.69 at 1:00 pm, PT

LEARN TO SELL PUT OPTIONS HERE!

SPX credit put spread (options)

Monday, 8/20/2018 (Expiration Day)

Trade 1 (10:14:53 am, PT)

sell -4 August 20, 2018  2850 puts at $0.65
buy +4 August 20, 2018  2825 puts at $0.05

Stats:

• delta for short put (2850):  15
• net credit (max profit):  $0.60 x 4 x 100 =  $240
• SPX trading at 2857

Trade 2 (12:31:12 pm, PT)

buy back short puts (2850) at $0.05

PROFIT:  $220 (in 2.25 hours)

Learn to SELL put options!

FREE lessons here!

SPX credit put spread (options)

Wednesday, 8/15/2018 (Expiration Wednesday)

Trade 1 (9:57:12 am, PT)  ←  SPX trading around 2815

sell -4 August 15, 2018  2795 puts at $0.80  (delta 10)
buy +4 August 15, 2018  2750 puts at $0.05 (cheap wings)

max profit:  $0.75 x 4 x 100 =  $300


Trade 2 (12:30:15 pm, PT)

buy back short puts (2795) at $0.05 (to remove the risk)
let long puts (2750) expire worthless

PROFIT:  $280 (in 2.5 hours)


Note:  SPX closed at 2818.37 at 1:00 pm, PT

Learn to SELL puts here!  FREE lessons!

SPX credit call spread (options)

Wednesday, 8/15/2018 (Expiration Wednesday)

Trade 1 (10:46:21 am, PT) ← SPX trading around 2814

buy +4 August 15, 2018  2840 calls at $0.05 (cheap wings)
sell -4 August 15, 2018  2820 calls at $1.70 (delta 28)


Trade 2 (11:45:59 am, PT)

buy back short calls (2820) at $0.30 (to take profits)


Trade 3 (11:57:24 am, PT) ← SPX trading around 2810

sell again -4 August 15, 2018  2820 calls at $0.45 (delta 12)


Trade 4 (12:58:01 pm, PT)

buy back short calls (2820) at $0.40 (to remove the risk .... things got too crazy 😖😖)
let long calls (2840) expire worthless

PROFIT:  $560 (in 2 hours)

Note:  SPX closed at 2818.37 at 1:00 pm, PT

Learn to SELL calls here!  FREE lessons!

SPX iron condor options trade

Friday 7/20/2018 (Expiration Friday)

Trade 1 (10:03:01 am, PT)

sell -4 July 20, 2018  2800 puts at $0.95 (credit) ←  20 delta (acceptable)
buy +4 July 20, 2018  2775 puts at $0.05 (debit)

net credit:  $0.90 x 4 x 100 =  $360 (max profit)
this is a semi-bullish trade


Trade 2 (10:45:47 am, PT)

buy +2 July 20, 2018  2820 calls at $0.05 (debit)
sell -2 July 20, 2018  2805 calls at $2.15 (credit) ← 51 delta (high!)

net credit:  $2.10 x 2 x 100 =  $420 (max profit)
this is a semi-bearish trade


Trade 3 (10:57:07 am, PT)

buy back the 4 short puts (2800 strike) at $0.65 to remove the risk (I got scared!!)


Trade 4 (12:22:11 pm, PT)

buy back the 2 short calls (2805 strike) at $0.35 to remove the risk (I got scared again!!)


COMMENTS:

• at 11:05 am, PT (just 20 minutes after I sold my call spread) SPX hit a high of 2806.90 which meant that my short calls (2805 strike) were in-the-money 😨

• at 11:38 am, PT, SPX hit a low of 2800.36 and I could have bought back my short calls (2805 strike) at $0.35 and closed the trade ..... but did I do it?  No!  Because I was greedy ..... 😨

• at 11:49 am, PT, SPX rose all the way back up to 2804.16, only $0.84 from my short call strike of 2805  😨 ..... now I was stuck ..... 😨

• finally, at 12:22 pm, SPX came back down and I was able to buy back my short calls (2805 strike) at $0.35 and close the trade (I didn't want to mess around anymore!)

July 20 was quite the roller coaster ride, but I did make some money, so I'm thankful!

TOTAL PROFIT:  $450

SPX credit call spread (options)

Monday, 7/16/2018 (Expiration Day)

Trade 1 (9:56:41 am, PT)

buy +4 July 16, 2018  2825 calls at $0.03 ("wings")
sell -4 July 16, 2018  2805 calls at $1.08 ← 27.48 delta

• net credit:  $1.05 x 4 x 100 =  $420 (max profit)
• margin:  $7560

Trade 2 (12:15:34 pm, PT)

• buy back the short calls (2805 strike) at $0.05 to take profits and remove the risk
• let the long "wings" (2825 strike) expire at 1:00 pm, PT

TOTAL PROFIT:  $400 (in 2¼ hours)  😃

LEARN TO SELL CALL OPTIONS HERE!

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!