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Friday, April 26, 2019

Options trade: Amazon (AMZN) post-EARNINGS PLAY

Friday, 4/26/2019 (8:56:47 am, PT) [EXPIRATION DAY]

sell short -1 April 26, 2019  $1910 put option at $2.51

Facts:
  • Q1 earnings announcement the previous day (4/25) after the Closing Bell
  • AMZN trading around $1917
  • 30 delta
  • selling put options is a semi-bullish strategy
  • this is a same-day trade (4/26 expiration) to take advantage of theta time decay
  • AMZN closed at $1950.63

Friday, 4/26/2019 (11:12:38 am, PT)

buy back put option at $0.11 (to remove the risk and protect my profit)

PROFIT:  $240 (in 2.25 hours)

Learn to SELL put options with my FREE lessons here!

Options trade: Amazon (AMZN) short put option (EARNINGS PLAY)

Thu. 4/25/2019 (10:25:28 am, PT)

sell short -1 April 26, 2019  $1810 put at $4.60

Facts:

  • earnings announcement after the Closing Bell today (4/25)
  • AMZN was trading around $1910.18 (I went $100 out-of-the-money)
  • 11.80 delta (88.20% probability of success)
  • option premiums are VERY attractive right before earnings announcements, so you can go further OTM
  • "expected move" ("market maker move") was plus/minus $67 post-earnings


Fri. 4/26/2019 (6:30:00 am, PT)

buy (to close) $1810 put option at $0.01

PROFIT:  $459 (1 day)

FREE LESSONS ON HOW TO SELL PUT OPTIONS!

Options trade: Tesla (TSLA) short call option (semi-bearish)

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.

Wednesday, April 24, 2019

Options trade: Microsoft (MSFT) short put option (semi-bullish)

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!

Thursday, April 18, 2019

Options trade: Amazon (AMZN) short put option (bullish trade)

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.

Tuesday, April 16, 2019

Options trade: Amazon short put (semi-bullish trade)

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)

Friday, April 12, 2019

Options trade: Amazon short put (semi-bullish trade)

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)

Options trade: Tesla (TSLA) short call (semi-bearish trade)

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

Wednesday, April 10, 2019

Options lesson for beginners: opening & closing trades (video)


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.

Wednesday, March 20, 2019

Options trade: Amazon short put (semi-bullish trade) (rolled once)

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).

Friday, March 8, 2019

Options trade: Amazon short call (semi-bearish trade)

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)

Tuesday, March 5, 2019

Options trade: Amazon short put (semi-bullish trade)

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)

Friday, March 1, 2019

Options trade: Amazon short put (semi-bullish trade)

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, January 22, 2019

Options trade: SPX credit call spread (bearish trade)

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, January 18, 2019

Options trades: SPX credit call spreads (semi-bearish trades)

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, January 16, 2019

Options trades: SPX short calls (bearish trades)

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, January 14, 2019

Options trade: SPX credit call spread (bearish trade)

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, January 9, 2019

Options trades: SPX credit call spreads post-Fed minutes

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, January 4, 2019

Options trade: SPX short call (bearish trade)

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, January 2, 2019

Options trade: SPX short call options (bearish trade)

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!