Options trading : SPX credit call spread (bearish)

  GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

10/20/2022 (12:53 pm, PT)

buy +1 Oct 21, 2022 3840 call at $0.07 (debit)

sell -1 Oct 21, 2022 3770 call at $1.17 (credit) 🠈 prob ITM 5%

• net credit:  $1.10 ($110 for one spread)
• 1 DTE
• SPX = 3671.14 (-24.02)

10/21/2022 (12:49:55 pm, PT)  🠈 expiration

buy back the 3770 short call at $0.10 to remove the risk

PROFIT:  $100 (in one day)

NOTES:

SPX settled at 3752.75 (+86.97), so my short call would have been fine.

However, it's always better to close the short option to remove the risk.

Options trading : SPX credit call spread (bearish)

  GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

10/19/2022 (12:56:44 pm, PT)

buy +1 Oct 20, 2022 3875 call at $0.05 (debit)

sell -1 Oct 20, 2022 3810 call at $0.75 (credit)

• net credit:  $0.70 ($70 for one spread)
• 1 DTE

10/20/2022 (6:36:33 am, PT)  🠈  expiration

buy back the 3810 short call at $0.05 to remove the risk

PROFIT:  $65 (in one day)

 

Options trading : SPX credit call spread (bearish)

  GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

10/18/2022 (12:50 pm, PT)

buy +1 Oct 19, 2022 3910 call at $0.05 (debit)

sell -1 Oct 19, 2022 3835 call at $0.65 (credit)

• net credit:  $0.60 ($60 for one spread)
• 1 DTE

10/19/2022 (6:51:19 am, PT)  🠈 expiration

buy back the 3835 short call at $0.05 to remove the risk

PROFIT:  $55 (in one day)

Options trading : SPX credit call spread (bearish)

   GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

10/27/2022 (12:59:10 pm, PT)

buy +1 Oct 28, 2022 3975 call at $0.07 (debit)

sell  -1 Oct 28, 2022 3915 call at $1.02 (credit)

• net credit:  $0.95 ($95 for each spread)
• 1 DTE
• SPX =  3805.65 (-24.95)
• prob ITM for 3915 short call = 4% 
• probability of success = 96%

10/27/2022 (1:11:56 pm, PT)  🠈  13 minutes later 

buy back the 3915 short call at $0.20 and take a quick profit

PROFIT:  $75 (in 13 minutes)

COMMENTS:

I was VERY surprised to see my call's premium drop so much in the after-hours market.  My initial plan was to buy back the short call at $0.05 sometime tomorrow (expiration day), but Wall Street gave me a surprise gift! 

Depending on what happens tomorrow (Oct 28), I may or may not reuse my long call ("wing") and sell (to open) another OTM call option.

For now, I am VERY happy that I made $75 in just 13 minutes!

Options trading : SPX credit call spread (bearish)

   GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

10/26/2022 (12:58:44 pm, PT)

buy +1 Oct 27, 2022 4000 call at $0.05 (debit)

sell -1 Oct 27, 2022 3920 call at $0.95 (credit)  🠈 prob ITM 5%

• net credit:  $0.90 ($90 per spread)
• 1 DTE

10/27/2022 (6:52:30 am, PT)  🠈 Expiration

buy back 3920 short call at $0.05

PROFIT:  $85 (in 1 day)

Options trading : Alphabet (GOOGL) semi-bullish trade

  GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

9/13/2022

sell -1 Oct 21, 2022 $93 put at $1.03

• prob ITM: 17%
• GOOGL = $106 (-4.80)
• oversold
• 38 DTE

10/21/2022 (expiration)

GOOGL closed at $101.13

My short put expired perfectly

PROFIT:  $103

Options trading : Alphabet (GOOGL) semi-bullish trade

  GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

9/12/2022

sell -1 Oct 21, 2022 $98 put at $1.10 (prob ITM 17.60%)

buy + 1 Oct 21, 2022 $57 put at $0.01 (prob ITM 0.15%)

• GOOGL = $110.70
• margin:  $571
• oversold
• 39 DTE

10/17/2022  🠈🠈  4 DTE

buy back the short put at $1.00

PROFIT:  $7.01

NOTES:

This was a difficult trade.

On 9/30/2022, the premium for the $98 put reached a high of $4.76, so I had a "paper loss" of $367 that day.

On 10/13/2022, GOOGL dropped to $94.38, so my $98 short put was almost $4.00 in-the-money (bad).

After all these challenges, I decided the best thing to do was to break even on the trade.

Options trading : Alphabet (GOOGL) semi-bullish trade

  GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

10/7/2022

sell -1 Oct 14, 2022 $91 put at $0.28

• prob ITM: 10.51%
• 7 DTE

10/14/2022 (Expiration Friday)

GOOGL closed at $96.56

my put expired perfectly

PROFIT: $28

Options trading : Alphabet (GOOGL) semi-bullish trade

  GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

10/10/2022

sell -1 Oct 14, 2022 $89 put at $0.11

• prob ITM: 5.30%
• GOOGL = $98
• 4 DTE

10/14/2022 (Expiration Friday)

GOOGL closed at $96.56

my put expired perfectly

PROFIT: $11

Options trading : US Oil Fund ETF (USO)

  GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

10/7/2022

sell -1 Oct 14, 2022 $69 put at $0.24

• prob ITM: 11%
• 7 DTE

10/14/2022 (Expiration Friday)

buy back short put at $0.01 to remove the risk

PROFIT:  $23

Options trading : SPX semi-bearish trade (credit call spread)

  GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

10/11/2022 (12:58:56 pm, PT)

buy +1 Oct 12, 2022 3775 call at $0.05 

sell -1 Oct 12, 2022 3630 call at $8.30 (prob ITM 24% )  🠈 HIGH!!

• net credit: $8.25
• max profit: $825 (1 day)
• 1 DTE

10/12/2022 (6:30:10 am, PT)  🠈 expiration

I bought back the short call at $7.00 right at the Opening Bell.

PROFIT:   $125

I decided I was OK with a quick profit of $125 since the FOMC would be releasing its minutes at 11 am (PT).  We never know how Wall Street will react to those minutes, so it's much better to close profitable trades before the event.

NOTE:

SPX settled at 3577.03, so I could have made $825 in one day if I had left my trade open.  BUT . . .  like I said, sometimes it's just not worth the risk.

Options trading : Kellogg (K) semi-bullish trade

  GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

8/31/2022

sell -1 Oct 21, 2022 $67.50 put at $0.65 (credit)

• K = $72.82
• prob ITM = 21%
• oversold
• 51 DTE

10/1/2022 (9 DTE)

buy back short put at $0.15 to take profits and remove the risk

PROFIT:  $50

Options trading : Alphabet (GOOGL) semi-bullish trade

 GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

9/29/2022

sell -1 Oct 7, 2022 $87 put at $0.27

• prob ITM: 9%
• 8 DTE

10/7/2022 (expiration)

GOOGL closed at $98.68

my short put expired perfectly

PROFIT:  $27

Options trading : US Oil Fund ETF (USO) semi-bullish trade

 GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

9/30/2022

sell -1 Oct 7, 2022 $59 put at $0.22

• prob ITM: 10.76%
• USO = $65.29 (-1.49)
• 7 DTE

10/7/2022 (expiration)

USO closed at $75.42

my short put expired perfectly

PROFIT:  $22

Options trading : US Oil Fund ETF (USO) semi-bullish trade

 GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

9/30/2022

sell -1 Oct 7, 2022 $59 put at $0.20

• prob ITM: 9.79%
• USO = $65ish
• 7 DTE

10/7/2022 (expiration)

USO closed at $75.42

My short put expired perfectly

PROFIT:  $20

Options trading : SPX semi-bullish trade (credit put spread)

GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

10/4/2022 (10:18:57 am, PT)

sell -1 Oct 4, 2022 3705 put at $1.00 (credit)  🠈 prob ITM 7% (risk)

buy +1 Oct 4, 2022 3605 put at $0.05 (debit)

• net credit:  $0.95 ($95 for one spread)
• 0 DTE

10/4/2022 (expiration)

SPX closed (settled) at 3790.93

my put spread expired perfectly

PROFIT: $95

Options trading : SPX semi-bullish trade (credit put spread)

 GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

10/6/2022 (11:03:55 am, PT)  🠈 Expiration

sell -1 Oct 6, 2022 3710 put at $0.50 (credit)  🠈 prob ITM 4.33% (risk)

buy +1 Oct 6, 2022 3655 put at $0.05 (debit)

net credit:  $0.45 ($45 for one spread)

10/6/2022 (12:30 pm, PT)

buy back 3710 short put at $0.05 to remove the risk

let the 3655 long put expire worthless

PROFIT:  $40

Options trading : SPX semi-bearish trade (credit call spread)

 GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.

Fri. 10/7/2022 (10:45:48 am, PT)  🠈 Expiration Friday

buy +1 Oct 7, 2022 3765 call at $0.05 (debit)

sell -1 Oct 7, 2022 3700 call at $0.55 (credit)

net credit: $0.50 ($50 for one contract)

Comments:

★  I placed a bearish trade because SPX gapped down at the Opening Bell and the intraday trend was clearly bearish

★  I went pretty far OTM because sometimes the markets will reverse after a morning selloff

★  I placed my bearish trade when the intraday stochastics were in the "overbought" region (see chart below)

Fri. 10/7/2022 (expiration)

SPX closed (settled) at 3639.84 (-104.68)

My call spread expired perfectly

PROFIT:  $50 (in 2.25 hours)

Options trading : SPX semi-bullish trade (credit put spread)

 GET WEEKLY TRADE IDEAS.

FREE OPTIONS TRADING LESSONS HERE.

10/3/2022 (9:54 am, PT)

sell -1 Oct 3, 2022  3575 put at $0.50 (prob ITM 3%)

buy +1 Oct 3, 2022  3500 put at $0.05

• net credit: $0.45
• 0 DTE

10/3/2022 (expiration) 

SPX settled at 3678

my put spread expired perfectly

PROFIT:  $45 (in 3 hours)

NOTE:  When I placed my trade at 9:54 am, I could tell that SPX was going to keep rising today.  Thus, I could have chosen a short put that was closer "to the money" (i.e., higher strike price) OR I could have sold more contracts.  However, in the end, I chose to play it safe and opted for a relatively easy trade with a high probability for success.

Options trading : SPX semi-bullish trade (credit put spread)

 GET WEEKLY TRADE IDEAS.

FREE OPTIONS TRADING LESSONS HERE.

9/30/2022 (9:11:50 am, PT)

sell -1 Sep 30, 2022 3560 put at $1.05 (prob ITM 5.35%)

buy +1 Sep 30, 2022 3475 put at $0.05

• net credit: $1.00
• 0 DTE

9/30/2022 (12:28:57 pm, PT)

buy back the 3560 short put at $0.50 to remove the risk

PROFIT:  $50