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Tuesday, April 12, 2022

Options trade : ARK Innovation ETF (ARKK) bearish trade

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Wed. 1/5/2022

buy +1 Feb 18, 2022 $115.22 call at $0.37 (prob ITM 5%)

sell -1 Feb 18, 2022 $101.22 call at $1.47 (prob ITM 17%)

  • net credit:  $1.10
  • oversold
  • big down-day
  • 44 DTE


Wed. 1/12/2022

buy back entire call spread at $0.50

NET PROFIT:  $57.34


Options trade : JP Morgan Chase (JPM) bullish trade

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Tue. 3/8/2022

sell -1 April 22, 2022 $95 put at $0.84

  • probability ITM:  10%
  • JPM = $129.05 (-0.16)
  • oversold
  • 45 DTE


Tue. 4/12/2022

buy back short put at $0.03

NET PROFIT:  $80.33 (in 35 days)

Reasons for closing trade:

  • take profits
  • JPM is reporting earnings before market open on 4/13/2022 


Sunday, April 3, 2022

Options trade : Biotech Sector ETF (XBI) bearish trade

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Thu. 1/13/2022

buy +2 Feb 18, 2022 $128 calls at $0.09 (prob ITM 2%)

sell -2 Feb 18, 2022 $111 calls at $1.19 (prob ITM 16.46%)

  • net credit:  $1.10
  • XBI = $99
  • 36 DTE
  • oversold

NOTE:

I don't normally place semi-bearish trades when the underlying security is "oversold."  However, in this case, XBI seemed to be trending down.


Mon. 2/7/2022

buy back both short calls ($111 strike) at $0.05 to remove the risk

let the long calls ($128 strike) expire


NET PROFIT:  $207.34 (25 days)


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Options trade : Draftkings (DKNG) bearish trade

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Thu. 1/20/2022

buy +1 Jan 21, 2022 $22 put at $1.10

sell -1 Jan 21, 2022 $21 put at $0.45

  • net debit: $0.65
  • oversold
  • 1 DTE


Fri. 1/21/2022 (12:35:15 pm, PT) (expiration)

sell (to close) entire put spread for $1.00 (see NOTE below)

NET PROFIT:  $32.35 (1 day)


NOTE:

I was pleasantly surprised that I was able to get the full (max) value for this put spread even though I still had 25 minutes left until expiration!  Thanks, market makers!


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Options trade : Ultra-VIX ETF (UVXY) bullish trade

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Wed. 1/5/2022

sell -1 Feb 18, 2022 $11 put at $1.36 (prob ITM 45%)

buy +1 Feb 18, 2022 $8 put at $0.14 (prob ITM 14%)

  • net credit:  $1.22
  • margin:  $300
  • oversold
  • 44 DTE


Tue. 1/25/2022

buy back the entire spread at $0.34

NET PROFIT:  $85.35

Reasons for closing trade:

  • overbought
  • 24 DTE
  • UVXY = $19


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Options trade : Ultra-VIX ETF (UVXY) bullish trade

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Wed. 2/9/2022

sell -1 April 14, 2022 $10 put at $1.61

  • probability ITM (assignment):  48%
  • UVXY = $12.415 (-.675)
  • oversold
  • 64 DTE


Fri. 2/25/2022

Close the trade and take profits

bought back short put at $0.38

NET PROFIT:  $121.68


Reasons for closing trade:

  • take profits!
  • UVXY is now overbought
  • we've achieved our goal
  • the put still has a 19% probability of assignment
  • UVXY = 16.47


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Options trade : AirBnB (ABNB) bearish trade

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Wed. 2/23/2022

buy +1 March 4, 2022 $185 call at $0.12 (prob ITM 1.70%)

sell -1 March 4, 2022 $167.50 call at $1.13 (prob ITM 13%)

  • ABNB = $150.83 (-14.41)
  • margin:  $621
  • net credit:  $1.01
  • 37 stochastics (and dropping)
  • 9 DTE


Mon. 2/28/2022

With 4 days remaining, it's time to close our trade and take profits

buy back entire call spread at $0.45 (debit)

NET PROFIT:  $53.34 (2 days)


LEARN TO TRADE OPTIONS FOR FREE!


Options trade : SPX bullish trade

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Tuesday, 3/1/2022

sell -1 March 2, 2022 4120 put at $2.60 

buy +1 March 2, 2022 4070 put at $1.10

  • net credit:  $1.50
  • SPX = 4289.78 - 4293.49 (-83)
  • 1 DTE


Wednesday, 3/2/2022 (expiration)

buy back short put (4120 strike) only at $0.05 to remove the risk

let long put expire

NET PROFIT:  $142.02


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Options trade : Gilead Sciences (GILD) bullish trade

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Friday, 2/11/2022

sell -1 March 18, 2022 $57.50 put at $0.82

  • prob ITM: 24%
  • GILD = $62.33 (+0.54)
  • oversold
  • 35 DTE


Monday, 3/7/2022 (11 DTE)

GILD is now overbought, so it's time to close the trade and take our profits

bought back short put at $0.35

NET PROFIT:  $45.68

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Friday, March 11, 2022

Options trade : SPX bearish trade

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Thu. 3/10/2022

buy +1 March 11, 2022 4405 call at $0.20 (prob ITM 0.94%)

sell -1 March 11, 2022 4360 call at $1.40 (prob ITM 5.10%)

  • net credit: $1.20 x 1 x 100 = $120
  • 1 DTE
  • margin:  $4388
  • SPX = 4260.65 (-17.23)


Fri. 3/11/2022 (expiration)

buy back 4360 call at $0.05 to remove the risk

let long call expire worthless

SPX settled at 4204.51

NET PROFIT:  $112.12 (1 day)


Wednesday, March 9, 2022

Option trade : General Mills (GIS) bullish trade

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Wed. 6/23/2021

sell -1 August 20, 2021  $57.50 put at $1.20

  • prob ITM: 37.58%
  • oversold
  • 58 DTE
  • earnings release on June 30 before market open


Wed. 8/11/2021

buy back short put at $0.20

NET PROFIT:  $98.67 (49 days)


Reasons for closing trade:

  • take profits
  • avoid assignment
  • 9 DTE
  • stochastics at 47
  • GIS = $58.81
  • prob ITM:  16%


NOTE:  On August 20, 2021 (expiration), GIS closed at $60.30.

Option trade : Dow Jones Industrial Average ETF (DIA) bullish trade

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Thu. 6/17/2021

sell -1 July 16, 2021 $320 put at $1.29

  • prob ITM: 15%
  • DIA = $338.81 (-1.95)
  • oversold
  • 29 DTE


Fri. 7/2/2021

buy back short put at $0.10

NET PROFIT:  $117.68 (15 days)


Reasons for closing trade:

  • take profits
  • avoid assignment
  • overbought
  • 14 DTE
  • DIA = $348 (+1.80)


Option trade : Energy Sector ETF (XLE) bullish trade

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Wed. 5/26/2021

sell -1 June 18, 2021  $51 put at $1.00 (prob ITM 40%)

buy +1 June 18, 2021  $42 put at $0.10 (prob ITM 5%)

  • net credit:  $0.90 x 1 x 100 =  $90
  • XLE =  $52.17
  • margin:  $900
  • 23 DTE


Wed. 6/2/2021

buy back entire put spread for $0.20 (debit)

NET PROFIT:  $67.35 (8 days)


Reasons for closing trade:

  • overbought
  • 15 DTE
  • take profits
  • protect my capital


Option trade : Tech Sector ETF (XLK) bullish trade

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Wed. 5/19/2021 (12:02 pm, PT)

sell -1 June 18, 2021 $128 put at $2.04

  • prob ITM:  32%
  • XLK = $133.39 (-0.51)
  • FOMC minutes at 11 am, PT
  • 30 DTE
  • oversold


Fri. 6/4/2021

buy back short put at $0.13 to remove the risk

NET PROFIT:  $189.67 (16 days)


Reasons for closing trade:

  • overbought
  • 14 DTE
  • take profits

Option trade : ARK Innovation ETF (ARKK) bullish trade

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Mon. 5/17/2021

sell -1 June 18, 2021 $82.96 put at $1.12

  • ARKK = $103.25 (-1.06)
  • prob ITM:  15%
  • 32 DTE
  • oversold


Fri. 5/28/2021

buy back short put at $0.15 to remove the risk

NET PROFIT:  $95.68 (11 days)


Reasons for closing trade:

  • 21 DTE
  • ARKK is overbought


Option trade : Match Group (MTCH) bullish trade

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Mon. 5/17/2021

sell -1 June 18, 2021  $120 put at $1.07

  • prob ITM:  13.45%
  • MTCH = $139.44 (-2.75)
  • oversold
  • 32 DTE


Fri. 5/28/2021

buy back short put at $0.20 to remove the risk

NET PROFIT:  $85.68 (11 days)


Reasons for closing the trade:

  • MTCH is overbought
  • 21 DTE


Option trade : SPX bullish trade

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Tue. 5/11/2021

sell -2 May 14, 2021 3995 put at $4.23

buy +2 May 14, 2021 3945 put at $2.58

  • net credit:  $1.65 x 2 x 100 =  $330
  • margin:  $5000 - $6000
  • 3 DTE


Fri. 5/14/2021 (expiration)

buy back short puts at $0.05 to remove the risk

let long puts expire


NET PROFIT:  $309.03


Option trade : SPX bullish trade

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Thu. 5/6/2021

sell -2 May 12, 2021 4020 puts at $5.77 (prob ITM 10%)

buy +2 May 12, 2021 3990 puts at $4.42 (prob ITM 8%)

  • net credit: $1.35 x 2 x 200 =  $270
  • SPX = 4172.37 (+4.78)
  • margin:  $6000 - $7000
  • 6 DTE


Wed. 5/12/2021 (expiration)

buy back short puts at $0.10

sell to close long puts at $0.05


PROFIT:  $260


Wednesday, March 2, 2022

Option trade : II-VI (IIVI) bullish trade

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Wed. 5/5/2021

sell -1 June 18, 2021 $55 put at $1.20

  • prob ITM:  21%
  • II-VI =  $65.21
  • oversold stochastic
  • 44 DTE
  • earnings on 5/6/2021 before market open
  • expected move after earnings: up/down $6.71


Thu. 5/27/2021

buy back short put for $0.15 to protect my profits

NET PROFIT:  $103.68 (22 days)


Option trade : Mosaic (MOS) earnings play

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Mon. 5/3/2021

sell -1 May 7, 2021  $34.50 put at $1.00

  • MOS = $35
  • prob ITM:  45%
  • margin:  $3450
  • earnings on 5/3/2021 after Closing Bell


Wed. 5/5/2021

buy back short put for $0.50 to protect profits

NET PROFIT:  $48.68