LILIA's MONEY MUSINGS

Friday, October 14, 2022

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

Wednesday, October 12, 2022

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

Friday, October 7, 2022

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)

Monday, October 3, 2022

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.