Tesla (TSLA) Post-earnings play

Thursday, 5/5/2016 (11:18:43 am, PT)

sold -1 May 6, 2016  $205 put at $0.91

Why did I place this trade?

• earnings were announced after the close on 5/4/2016
• the stock dropped on 5/5, so implied volatility was still high
• quick, 1-day trade to take advantage of the inflated IV
• 79% probability of success
• Robyn at Tasty Trade sold the May 6 $210 put (thanks, Robyn!)

Friday, 5/6/2016 (9:36:42 am, PT)

buy back put at $0.05

PROFIT:  $86 (in ONE day!)

SUCCESS!

Comments:

• My put option hit $0.04 at 6:34 am this morning (5/6), but I had forgotten to set a "buy to close order at $0.05" last night, so I missed it this morning.
• Between 6:34 am and 9:36 am, TSLA dropped, so the put price rose again.
• The market makers made me suffer for 3 hours before finally accepting my bid of $0.05.

The moral of the story:

ALWAYS have your closing orders in place!!!

Energy Sector (XLE) Call Options

Friday, 4/29/2016 (10:33:59 am, PT) (FP)

sell -10 May 2016  $70 calls at $0.51

Why did I place this trade?

• stochastics in overbought region
• 78.60% probability of success

Tuesday, 5/3/2016 (7:35:23 am, PT)

buy to close calls at $0.21

Why did I place this trade?

• take profits at 50% of max credit

PROFIT:  $300 (in 3 trading days!)

SUCCESS!

Costco (COST) May Put Options

Friday, 4/22/2016 (11:33:10 am, PT)

sell -4 May 2016  $144 puts at $1.13

Why did I place this trade?

• stochastics in oversold region
• 75% probability of success

Tuesday, 4/26/2016 (8:26:57 am, PT)

buy back all puts at $0.50

Why did I place this trade?

• I've collected more than 50% of the max in just 3 trading days
• take profits!

PROFIT:  $252

SUCCESS!

Visa (V) April earnings play

4/21/2016 (12:50:48 pm, PT)

sell -3 April 22, 2016  $78 puts at $0.36

Why did I place this trade?

• Visa was reporting earnings after the close on 4/21
• implied volatility was relatively high
• I was more bullish than bearish
• 80% probability of success
• expected move =  plus/minus $2.63

4/22/2016 (6:39:05 am, PT)  [expiration]

buy back all 3 puts at $0.05

PROFIT:  $93 (ONE day!)

 

SUCCESS!

Comments:

• I was REALLY lucky that the market makers let me buy back my short puts at $0.05 because that was lower than the "mid" price.  Thank you, market makers!
• I'm REALLY happy that I closed my trade at $0.05 because exactly one hour later Visa dropped to $77.28.
• Notice that I made money even though I was wrong "directionally."  This is due to post-earnings "volatility crush."

Netflix (NFLX) post-earnings play

4/19/2016 (9:55:01 am, PT)

sell -2 April 22, 2016  $99.50 calls at $0.71

Why did I place this trade?

• earnings were released on 4/18
• stock dropped on 4/19
• I was bearish (short-term) on NFLX
• 76% probability of success

4/21/2016 (12:58:51 pm, PT)

buy back calls at $0.05

PROFIT:  $132 (in 3 days)

Comments:
The high implied volatility of NFLX kept this call premium at $0.11 most of the day even though the stock was over $4.00 OTM with just 1 day remaining until expiration. 
The call premium finally dropped to 5 cents with just 1 minute left in the trading session.

SUCCESS!

Gold (GLD) Call Options

4/13/2016 (6:46:15 am, PT)

sell -10 April 22, 2016 (wk 4)  $122 calls at $0.45

Why did I place this trade?

• stochastics in overbought region
• 78.50% probability of success

4/14/2016 (7:52:14 am, PT)

buy back calls at $0.16

PROFIT:  $290 (in ONE day!)

SUCCESS!

Spiders (SPY) Call Options

4/14/2016 (9:44:14 am, PT)

sell -10 May 2016  $213 calls at $0.95

Why did I place this trade?

• stochastics in overbought region
• 77% probability of success

4/15/2016 (11:14:15 am, PT)

buy back all 10 puts at $0.71

PROFIT:  $240 (in ONE day!)

SUCCESS!

Whole Foods (WFM) Put Options

4/7/2016 (9:48:08 am, PT)

sell -4 April 29, 2016 (wk 5)  $29.50 puts at $0.39

Why did I place this trade?

• stochastics in oversold region
• 69% probability of success

4/18/2016 (7:48:17 am, PT)

buy to close puts at $0.14

PROFIT:  $100

SUCCESS!

Celgene (CELG) Call Options

4/14/2016 (10:52:10 am, PT) (FP)

sell -2 April 22, 2016 (wk 4)  $111 calls at $0.43

Why did I place this trade?

• stochastics in overbought region
• 83.50% probability of success
• CELG does not pay dividends (important when selling calls)

4/21/2016 (6:36:05 am, PT) 

buy to close calls at $0.05

PROFIT:  $76.00

SUCCESS!

COMMENTS:

Even though there's only one day left until expiration, it's always a good idea to buy back your short options at $0.05 (or less) to remove the risk.

It's a good thing I did that on 4/21 because exactly two hours later CELG jumped to $109.82.  And who knows what will happen the next day, right?

Spiders (SPY) Bull Put Spread

3/31/2016 (10:31:47 am, PT)  (FP)

sell -4 May 2016  $200 puts at $2.15 
buy +4 May 2016  $190 puts at $0.83

Net credit:  $1.32 x 4 x 100 =  $528


4/19/2016 (11:03:14 am, PT)

buy to close the $200 puts at $0.74
sell to close the $190 puts at $0.23

Net debit:  $0.51 x 4 x 100 = $204

PROFIT:  $324
Return on capital:  8% (in 19 days)

SUCCESS!

Gold ETF (GLD) May Put Options

Wed. 4/6/2016 (10:04:01 am, PT)

sold -2 May 2016  $115 puts at $1.83 (credit)

Why did I place this trade?

• stochastics in oversold region (check out my impeccable timing HERE)
• 60.13% probability of success

Tue. 4/12/2016 (10:21:04 am, PT)

bought back both puts at $0.84 (debit)

 Why did I place this trade?

• stochastics in overbought region (check out my impeccable timing HERE)
• take profits

PROFIT:  $198 (in 5 trading days)

SUCCESS!

Russell 2000 ETF (IWM) Call Options

4/6/2016 (8:44:34 am, PT)

sell -10 April 2016  $111 calls at $0.61 (bearish strategy)

Why did I place this trade?

• stochastics in overbought region
• buying momentum is decreasing
• strong "up" day ( = higher call premiums)
• 70% probability of success

4/7/2016 (11:08:55 am, PT)

buy back all 10 calls at $0.26

PROFIT:  $350 (in ONE day!!)

SUCCESS!

LinkedIn (LNKD) Put Options

Tue. 3/22/2016 (11:16:09 am, PT)

sell -1 Apr 1, 2016 (week 1)  $111 put at $1.14 (credit)

Why did I place this trade?

• stochastics in oversold region (see chart HERE)
• high implied volatility
• 70% probability of success

Wed. 3/30/2016 (10:45:41 am, PT)

buy back put at $0.43 (debit)

Why did I place this trade?

• On 3/29/2016, LNKD was downgraded 
• On 3/30/2016, LNKD miraculously jumped over $3.00, so I closed my position to take PROFITS

GROSS PROFIT:  $71

SUCCESS!

Gold (GLD) April Put Options

Thu. 3/24/2016 (12:20:55 pm, PT) FP

sell -10 Apr 2016  $112 puts at $0.41

Why did I place this trade?

• stochastics in oversold region
• 83% probability of success

Tue. 3/29/2016 (11:46:40 am, PT)

buy back all 10 puts at $0.17

Why did I place this trade?

• GLD up over $2.00
• TAKE PROFITS

GROSS PROFIT:  $240 (in 4 trading days)

SUCCESS!

Gold (GLD) Call Options

3/22/2016 (11:37:16 am, PT)

sell -10 Apr 1, 2016 (wk 1)  $121.50 calls at $0.51

Credit received:  $510

Why did I place this trade?

• stochastics in overbought region
• 75% probability of success

3/23/2016 (12:45:14 pm, PT)

buy back all 10 calls at $0.17

Why did I place this trade?

• GLD down $2.61
• take PROFITS!

PROFIT:  $340 (in ONE day!)

SUCCESS!

Gold (GLD) Call Options

3/22/2016 (12:35:32 pm, PT)  FP

sell -10 Apr 1, 2016 (wk 1)  $123 calls at $0.29

credit received:  $290

Why did I place this trade?

• stochastics in overbought region
• 85% probability of success

3/23/2016 (11:58:37 pm, PT)

buy back all 10 calls at $0.12

Why did I place this trade?

• GLD down $2.29
• take profits!

PROFIT:  $170 (in ONE day)

SUCCESS!

Spiders (SPY) Mar debit put spread

2/19/2016 (12:38:30 pm, PT)

buy +1 March 2016  $187 put at $2.58
sell -1 March 2016  $186 put at $2.31

net debit:  $27 (max risk)
potential profit:  $73 (max)


Why did I place this trade?

• stochastics in overbought region
• I was bearish but I didn't want to risk too much money in case I'm wrong
• trying my luck with a small debit trade

3/18/2016 (expiration)

SPY closed at $204.38, so my entire debit spread expired worthless  

TOTAL LOSS:  $27

COMMENTS:

• Even though SPY was in the "overbought" region on 2/19/2016, there's no guarantee that it would reverse and go back down.
• OTM debit trades are risky and have a low probability of success.
• I was just having some "fun" and decided to try my luck on this "casino play."
• I was only risking $27 which is manageable.

QQQ Put Options

1/12/2016 (10:48:51 am, PT)

sell -1 Feb 2016  $105 put at $3.11

Why did I place this trade?

• stochastics in oversold region
• high implied volatility
• 47% probability of success (almost 50/50)

Comments:

• This put option was $0.16 in-the-money at the time.  
• I don't normally sell puts that are ITM, but I was just having some fun plus I knew I could fix the trade if it went against me.

2/12/2016 (10:06:10 am, PT)  [roll]

buy to close 1 Feb 2016  $105 put at $7.55
sell to open 1 Mar 2016  $105 put at $8.34

Net credit for roll:  $0.79

Comments:

• I decided to roll on 2/12 because my put was ITM with only $0.11 of extrinsic value remaining.
• On exp. Friday (2/19), QQQ closed at $101.63.

3/11/2016 (7:21:44 am, PT)
buy back March $105 put at $0.97

Comments:

• My put was finally OTM again with 5 trading days left, so I decided to close my position and take profits.

GROSS PROFIT:  $294 (in 2 months)

SUCCESS!

Spiders (SPY) Ratio Put Spread

2/4/2016 (11:10:51 am, PT)  FP

buy +1 March 2016  $181 put at $2.78
sell -2 March 2016  $180 puts at $2.55

Analysis:

• Net credit received:  $2.32 x 1 x 100 =  $232
• Theoretical max profit:  ($2.32 + $1.00) x 1 x 100 =  $332
• Stochastics in overbought region

2/11/2016 (11:28:05 am, PT)

sell (close) 1 March 2016  $181 put at $6.32
(stochastics in oversold region)


3/10/2016 (6:30:03 am, PT)

buy back remaining 2 short puts at $0.05

GROSS PROFIT:  $854  (GREAT trade!!)

COMMENTS:

• My actual gross profit of $854 is much higher than the theoretical max profit because I "broke apart" my ratio spread and sold (close) my long put on 2/11/2016 when SPY was at the bottom. 
• Once I sold (close) my long put, I ended up with an extra "naked" put.

SUCCESS!

Spiders (SPY) March Puts

2/10/2016 (12:36:38 pm, PT)

sold -1 March 2016  $177 put at $3.11

Why did I place this trade?

• stochastics in oversold region
• high implied volatility
• 70% probability of success

3/8/2016 (11:14:52 am, PT)

buy back my put at $0.05 to remove the risk and take profits

PROFIT:  $306

SUCCESS!

Gold (GLD) Call Options

2/17/2016 (11:45:46 am, PT)

sell (open) -10 Feb 26, 2016 (week 4)  $119.50 calls at $0.52

Why did I place this trade?

• stochastics in "overbought" region
• 80% probability of success

2/26/2016 (7:53:12 am, PT)  (Expiration Friday)

buy back all 10 calls at $0.01

Why did I place this trade?

• to remove the risk of assignment
• to protect my profits

PROFIT:  $510 (in 10 days)

SUCCESS!

Spiders (SPY) Feb Call Options

Thursday, 2/18/2016 (8:33:40 am, PT)

sold (open) -10 Feb 26, 2016 (wk 4)  $197.50 calls at $0.27

Why did I place this trade?

• stochastics in overbought region

Wednesday, 2/24/2016 (7:09:48 am, PT)

bought back all 10 calls at $0.02

PROFIT:  $250 (in 5 trading days)

SUCCESS!

SPY March Call Options

Thursday, 2/18/2016 (9:26:03 am, PT) RD

sold -2 March 2016  $199 calls at $1.19

Why did I place this trade?

• stochastics in overbought region
• 78% probability of success

Tuesday, 2/23/2016 (9:19:15 am, PT)

bought back both calls at $0.88

Why did I close my position so soon?

• To take profits

PROFIT:  $62

SUCCESS!

QQQ Put Options

2/12/2016 (10:00:20 am, PT)

sell -10 Feb 2016  $92 puts at $0.23

probability of success:  90%


2/17/2016 (6:30:31 am, PT)

buy back puts at $0.02

PROFIT:  $210 (in 3 trading days)

SUCCESS!

Tesla (TSLA) Feb Put Options

Friday 2/12/2016 (11:04:31 am, PT) FP

sold (open) -10 Feb 2016  $123 puts at $0.35

Why did I place this trade?

• stochastics in oversold region
• TSLA just reported earnings (so no more surprises)
• implied volatility still high (so high premiums)
• 3-day weekend (so 3 days of theta time decay ... I LOVE 3-day weekends)
• 94% probability of success (high)

Tuesday 2/16/2016 (12:32:19 pm, PT)

buy back all 10 puts at $0.03

Comment:
This is absolutely amazing.  My trade filled at $0.03 even though the "mid" price was $0.14.  
I figured the market makers must have wanted to make $30 instead of nothing.  Good for them for taking my bid!

PROFIT:  $320 (in TWO trading days!)

SUCCESS!

SELL PUT OPTIONS when the IV is inflated.

Learn on your own for FREE by watching MY YOUTUBE VIDEOS HERE or

PAY for private training (details HERE). 

Spiders (SPY) Feb Put Options

1/12/2016 (10:33:26 am, PT)

sell (open)  -2 Feb 2016  $174 puts at $1.05

Why did I place this trade?

• stochastics in oversold region
• high implied volatility
• 86% probability of success

2/16/2016 (12:19:54 pm, PT)

buy back both puts at $0.03

PROFIT:  $204

SUCCESS!

SELL PUT OPTIONS when the IV is inflated.

Learn on your own for FREE by watching MY YOUTUBE VIDEOS HERE or

PAY for private training (details HERE). 

Spiders (SPY) Feb Strangle

Tuesday 2/2/2016 (10:08:03 am, PT)

sell -10 Feb 12 2016 (wk 2)  $198 calls at $0.24 (prob ITM = 10%)
sell -10 Feb 12 2016 (wk 2)  $181 puts at $0.39 (prob ITM = 10%)


Friday 2/5/2016 (1:03:54 pm, PT)

buy back the 10 calls at $0.05 


Friday 2/12/2016 (7:46:49 am, PT)

buy back the 10 puts at $0.04

Comment:
Even though 2/12/2016 was Expiration Friday, I went ahead and bought back my short puts anyway just to be safe.

TOTAL PROFIT:  $540 (in 10 calendar days)

SUCCESS!

Spiders (SPY) Feb Call Options

2/2/2016 (11:37:32 am, PT) RD

sell -2 Feb 2016  $195 calls at $1.17

Why did I place this trade?

• stochastics in overbought region
• 75% probability of success

2/12/2016 (12:58:32 pm, PT)

buy back both calls at $0.05

PROFIT:  $224 (in 10 calendar days)

SUCCESS!

Check out my impeccable timing!

• chart on 2/2/2016   
• chart on 2/12/2016

Tesla (TSLA) Feb earnings play

2/10/2016 (12:58:42 pm, PT)

sold -2 Feb 12, 2016 (wk 2)  $105 puts at $1.05

Why did I place this trade?

• TSLA was announcing earnings after the Closing Bell
• the "expected move" was plus or minus $22.51
• TSLA was trading around $143.67 when I placed the trade
• probability of success:  90%

2/11/2016 (10:43:20 am, PT)  ....  ONE day later 

buy back both puts at $0.02

PROFIT:  $206  (in ONE day!!!!)

SUCCESS!

SELL PUTS and/or CALLS right before earnings announcements when the IV is high and premiums are inflated.

Learn on your own for FREE by watching MY VIDEOS HERE or

PAY for one-on-one training (details HERE).

Spiders (SPY) Feb Put Options

1/12/2016 (11:18:23 am, PT)  FP

sell -2 Feb 2016  $165 puts at $0.53 (credit)

Why did I place this trade?

• stochastics in oversold region (see scary-looking chart HERE!)
• high implied volatility
• probability of success:  92.37% (very high)

2/4/2016 (7:16:23 am, PT)

Click HERE to see chart (notice stochastics in overbought region?)

buy back both puts at $0.05 (debit)

PROFIT:  $96

SUCCESS!

SELL PUTS when the IV is high and GET PAID UP FRONT!

Learn on your own for FREE by watching MY VIDEOS HERE or

PAY for private lessons (details HERE).

Spiders (SPY) Feb Put Options

1/8/2016 (10:24:10 am, PT)

sell -2 Feb 2016  $186 puts at $2.92

Why did I place this trade?

• stochastics in oversold region
• high implied volatility
• probability of success:  70%

1/29/2016 (9:39:56 am, PT)

buy back both puts at $1.41

Why?  To take profits.

PROFIT:  $300 (in 3 weeks)

SUCCESS!

Implied volatility is high!  

SELL PUTS to take advantage of inflated premiums.

Learn on your own for FREE by watching MY VIDEOS HERE or

PAY for one-on-one training (details HERE).