Thu. 4/25/2019 (10:36:23 am, PT)
sell short -1 May 10, 2019 $277.50 call option at $1.53
Facts:
- earnings results were announced on 4/24, stock dropped $10 the next day (4/25)
- 15 days 'til expiration
- TSLA @ $247.56 (I went $30 out-of-the-money)
- 11.29 delta (relatively "safe")
Fri 4/26/2019 (9:04:42 am, PT)
buy (to close) short call option at $0.50
PROFIT: $103 (1 day)
Comments: I decided to close my trade for several reasons:
- to protect my profit
- I don't know what's going to happen in the next 14 days
- any type of positive news will result in a "short squeeze" and my short call will end up in trouble
FREE LESSONS: LEARN TO SELL CALL OPTIONS.
Fri. 4/12/2019 (10:17:37 am, PT)
sell short -1 July 19, 2019 $110 put at $1.68
Facts:
- 23.29 delta
- MSFT trading at $120.66
- 98 days 'til expiration
- stochastics "overbought"
- CNBC reported "unusual options activity" (heavy volume on the July $120 long calls)
- earnings report after the close on Wed. 4/24/2019
Wed. 4/24/2019 (8:47:33 am, PT)
buy (to close) put option at $0.94
Why? To protect my profits and to avoid any unpleasant surprises after the earnings announcement (at 1 pm, PT).
PROFIT: $74 (12 days)
Learn to SELL PUT OPTIONS here! FREE lessons!
Wed. 4/17/2019 (11:10:30 am, PT)
sell short -1 April 18, 2019 $1850 put option at $1.47
Facts:
- AMZN trading at $1868
- 15.73 delta
- "overbought" stochastics
- 1 day 'til expiration (DTE)
Thu. 4/18/2019 (12:49:02 pm, PT) [Expiration Thursday]
buy back $1850 put option at $0.02
PROFIT: $145 (in one day)
NOTE: Even though AMZN was trading near $1861 (4/18/2019) and my short put was relatively "safe," I didn't want to take any chances. Thus, I decided to spend $2.00 to buy back my short put and protect my profits.
LEARN TO SELL PUT OPTIONS BY WATCHING THESE VIDEOS.
Fri. 4/12/2019 (12:14:39 pm, PT)
sell short -1 April 18, 2019 $1790 put at $2.06
Facts:
- Amazon at $1844.67
- "overbought" stochastics
- 6 days 'til expiration
- 10.28 delta
Tue. 4/16/2019 (7:54:51 am, PT)
buy back put at $0.50 (take profits)
PROFIT: $156 (in two days)
Thu. 4/11/2019 (10:33:36 am, PT)
sell short -1 April 12, 2019 $1820 put at $1.28
Facts:
- Amazon at $1843.96
- 1 day 'til expiration
- "overbought" stochastics
- 12.42 delta
Fri. 4/12/2019 (9:44:23 am, PT)
buy back put at $0.05 (to remove the risk & take profits)
PROFIT: $123 (in one day)
Thursday, 4/11/2019 (12:04:22 pm, PT)
sell short -1 April 18, 2019 $285 call option at $1.40
Facts:
- TSLA was trading near $268.02
- bad news about TSLA manufacturing plant
- 15.13 delta
- 7 days 'til expiration (DTE)
- stochastics: middle
- margin: $2274.97
Friday, 4/12/2019 (11:12:19 am, PT)
buy to close at $0.90 (take profits)
PROFIT: $50 (in one day)
SEE SIMILAR TRADES ON YOUTUBE
Watch the free video here: VIDEO.
When you're trading options (puts and calls), your "opening" trade can be either a "sell" transaction or a "buy" transaction. That's right, you can SELL options first, get paid up front, and then buy back the options later. Thus, you sell high and hopefully, buy back low. The difference between your initial "sell" price and your subsequent "buy back" price is your profit.
Summary:
If your opening trade is a "sell," then just buy back the option to close your "short" position.
If your opening trade is a "buy," then just sell the option to close your "long" position.
For more details, check out THIS SHORT VIDEO.
Trade 1
Tuesday 3/5/2019 (12:13:54 pm, PT)
sell short -1 March 8, 2019 $1660 put at $2.61
Facts:
- 3 days 'til expiration
- 14 delta
Trade 2
Thursday, 3/7/2019 (12:56:53 pm, PT) [AMZN dropped $45, so I rolled down & out to April 12]
buy (to close) 1 March 8, 2019 $1660 put at $36.49
sell (to open) 1 April 12, 2019 $1590 put at $38.41
net credit: $1.92
Trade 3
Wednesday, 3/20/2019 (9:13:26 am, PT)
buy back April 12 $1590 put at $3.25
PROFIT: $128
I decided to close my trade before the FOMC announcement at 11 am (PT).
Thursday, 2/28/2019 (11:19:31 am, PT)
sell short -1 March 8, 2019 $1705 call at $2.74
Facts:
- 8 days 'til expiration
- "overbought" stochastics
- 10 delta
Friday, 3/8/2019 (8:19:34 am, PT) (Expiration Friday)
buy back March 8 $1705 call option at $0.01 (to remove the risk and take profits)
PROFIT: $273 (in one week)
Monday, 3/4/2019 (11:05:10 am, PT)
sell short -1 March 8, 2019 $1632.50 put at $2.47
Facts:
- 4 days 'til expiration
- 10.52 delta
Tuesday, 3/5/2019 (11:58:12 am, PT)
buy back put option at $0.80 (take profits)
PROFIT: $167 (in one day)
Thursday, 2/28/2019 (11:19:31 am, PT)
sell short -1 March 8, 2019 $1565 put at $2.63
Facts:
- 8 days 'til expiration (DTE)
- 10 delta
Friday, 3/1/2019 (12:54 pm, PT)
buy back put option at $0.95
Amazon rose $33, so it's time to close my trade and take profits.
PROFIT: $168 (in one day)
Tuesday 1/22/2019 (Expiration Day)
WATCH THE VIDEO HERE!
Trade 1 (10:25:33 am, PT)
buy +2 Jan 22, 2019 2665 calls at $0.05 (cheap wings)
sell -2 Jan 22, 2019 2635 calls at $2.00 (29 delta)
margin: (2665 － 2635) x 2 x 100 = $6000
credit (max potential profit): ($2.00 － $0.05) x 2 x 100 = $390
Trade 2 (11:54:09 am, PT)
buy back both short calls (2635) at $0.30
let the long calls (2665) expire worthless
PROFIT: $330 (in 90 minutes)
WATCH THE VIDEO HERE!
Friday 1/18/2019 (Expiration Friday)
WATCH THE VIDEO HERE!
Trade 1 (10:48 am, PT)
buy +2 January 18, 2019 2705 calls at $0.05 (cheap "wings")
sell -2 January 18, 2019 2675 calls at $1.80 (27 delta)
Trade 2 (11:38 am, PT)
buy back the 2 short calls (2675) at $0.60 (take profits and remove the risk)
PROFIT #1: $230 (in 45 minutes)
Trade 3 (11:55 am, PT)
sell -2 January 18, 2019 2675 calls at $0.80 (17.46 delta)
Comment: I'm selling (to open) two new calls (same strike) so I don't "waste" my two long calls ("wings") (there's still 1 hour left in the trading session)
Trade 4 (12:49 pm, PT)
buy back the 2 short calls (2675) at $0.10
Comment: The market makers were "torturing" me by making me wait until 12:49 pm. They refused to sell me the 2675 calls for $0.10 even though they were pretty far out-of-the-money
PROFIT #2: $140 (in 55 minutes)
TOTAL PROFIT: $370
Comments:
- at 12:52 pm, SPX was at 2663.37 and then staged a sharp reversal (back up)
- at 1:00 pm, SPX closed at 2670.71
- I'm VERY glad I bought back my short calls at $0.10 because that late-afternoon reversal would have completely stressed me out
WATCH THE VIDEO HERE!
Wednesday 1/16/2019 (Expiration Wednesday)
Trade 1 (9:52 am, PT)
sell -1 January 16, 2019 2630 call at $1.00 (16 delta)
Trade 2 (9:58 am, PT)
sell -1 January 16, 2019 2630 call at $1.05 (18 delta)
Trade 3
buy +2 January 16, 2019 2655 calls at $0.10 ("wings")
Trade 4 (12:46 pm, PT)
buy back both short calls (2630 strike) at $0.05 (to take profits & remove the risk)
PROFIT: $175
Monday, 1/14/2019 (Expiration Monday)
Trade 1 (10:15 am, PT)
buy +2 January 14, 2019 2625 calls at $0.05 ("wings")
sell -2 January 14, 2019 2595 calls at $1.15 (21.86 delta)
Trade 2 (11:46 am, PT)
buy back both short calls (2595 strike) at $0.30 (take profits & remove the risk)
let long calls expire "worthless"
PROFIT: $160 (in 90 minutes)
SPX closed at 2582.61
WATCH THE VIDEO HERE!
Wednesday, 1/9/2019 (Expiration Day)
WATCH THE VIDEO HERE!
Trade 1 (11:08:46 am, PT)
sell -2 Jan 9, 2019 2610 calls at $1.25 (14.62 delta)
buy +2 Jan 9, 2019 2640 calls at $0.05 ("wings")
Comments
- The Federal Reserve released its minutes at 11 am, PT
- Margin requirements: (2640 − 2610) x 2 x 100 = $6000
Trade 2 (11:30:07 am, PT)
buy back both short calls (2610 strike) at $0.20 (to remove the risk and take profits)
PROFIT #1 (short calls only): $210
Trade 3 (11:48:57 am, PT)
sell -2 new calls (2600 strike) at $1.25 (19.18 delta)
Trade 4 (12:30:18 pm, PT)
buy back second set of short calls (2600 strike) at $0.30 (to remove the risk and take profits)
PROFIT #2 (short calls only): $190
TOTAL PROFIT: $210 + $190 − $10 (cost of the two long calls) = $390 (in about 90 minutes)
Comments
- I waited until after the Fed's minutes to place my first trade (I don't like uncertainty)
- After I bought back my first set of short calls, I was able to sell another set of calls for an additional credit
- SPX closed at 2584.96, so my short calls would have been fine in the end. However, I don't like to take unnecessary risk, so I always buy back my short options before expiration if possible
WATCH THE VIDEO HERE!
Friday, 1/4/2019 (Expiration Friday)
Trade 1 (11:25:40 am, PT)
sell (to open) -1 Jan 4, 2019 2545 call option at $1.65 (delta 19.25)
Comment: The markets gapped up right at the opening bell and continued to rise. It had been a pretty strong "up" day, so I kept my trade small by selling only one contract. Selling call options is a semi-bearish strategy.
Trade 2 (12:51:07 pm, PT)
buy back call option at $0.05 (to remove the risk and take profits)
Comment: SPX closed at 2531.94 at 4 pm, ET (up 84.05).
PROFIT: $160 (in 90 minutes)
LEARN TO SELL CALL OPTIONS HERE!
Wednesday, 1/2/2019 (Expiration Wednesday)
Trade 1 (10:01:05 am, PT)
sell (to open) -2 January 2, 2019 2530 calls at $1.40 (15 delta)
Max potential profit: $280
Trade 2 (11:59:10 am, PT)
buy (to close) both calls at $0.20 (to remove the risk and take profits)
Note: SPX closed at 2510.03 at 4 pm, ET
PROFIT: $240 (in 2 hours)
Learn to SELL CALL OPTIONS here!
Friday 12/21/2018 (Expiration Friday)
Trade 1A (9:42:23 am, PT)
sell (to open) -2 Dec 21, 2018 2490 call options at $2.35 (14 delta)
Trade 1B (10:53:08 am, PT)
buy (to close) both of the 2490 call options at $0.90
PROFIT: $290
Trade 2A (11:40:11 am, PT)
sell (to open) -2 Dec 21, 2018 2460 call options at $1.85 (17 delta)
(notice that the strike price is 30 points lower than in Trade 1)
Trade 2B (12:12:22 pm, PT)
buy (to close) both of the 2460 call options at $0.65
PROFIT: $240
Trade 3 (12:34:12, pm, PT)
sell (to open) -2 Dec 21, 2018 2435 call options at $2.60 (22 delta)
(notice that the strike price is 25 points lower than in Trade 2)
Note:
I had submitted a limit order to buy back both of the 2435 calls at $0.05, but my order never filled even though my short calls were out-of-the money by $18. I had never experienced such a thing before. The "ask" remained at $0.55 all the way until the Closing Bell. Those market makers missed out on taking my $10 because they got greedy!!
SPX closed at 2416.62 (down 50.80).
TOTAL PROFIT (3 separate trades): $1050 (in 4 hours)
LEARN TO SELL CALL OPTIONS HERE!
Monday 12/17/2018 (Expiration Monday)
Trade 1 (9:04:09 am, PT)
sell (to open) -1 Dec 17, 2018 2620 call option at $1.45 (15 delta)
Trade 2 (9:25:29 am, PT)
buy (to close) +1 above call option at $0.45
PROFIT: $100 (in 21 minutes)
Trade 3 (10:30:59 am, PT)
sell (to open) -1 Dec 17, 2018 2590 call option at $2.25 (18 delta)
Trade 4 (11:52:46 am, PT)
buy (to close) +1 above call option at $0.20
PROFIT: $205 (in 1 hour, 22 minutes)
Trade 5 (12:36:43 pm, PT)
sell (to open) -1 Dec 17, 2018 2545 call option at $1.95 (30 delta)
Trade 6 (12:49:05 pm, PT)
buy (to close) +1 above call option at $0.40
PROFIT: $155 (in 13 minutes)
TOTAL PROFIT (selling call options 3 times): $460
COMMENTS:
- As SPX started dropping, I would buy back my short calls and sell (to open) new ones that were closer "to the money"
- Notice that my "deltas" started rising with each subsequent trade (once SPX started dropping, I felt pretty confident that the downward trend would continue at least until 12:50 pm or so)
- Quite often, after a whole day of selling, the buyers come back in towards the end of the day and push the SPX back up (at 12:49 pm, PT, SPX hit an intraday low of 2530.54 and then reversed back up to close at 2545.94)
- It's a GOOD thing I bought back my short call (2545 strike) at 12:49 pm because it would have ended up "in-the-money" at the close!
