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
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!
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!
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 😭😭😭
- 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 😁
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
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
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!
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!
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.
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) 😀
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.
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.
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)
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!
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)
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)
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!!
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)
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
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)
