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Wednesday, 5/1/2019 (11:50:31 am, PT)

sell short -1 May 10, 2019  $1880 put option at $6.80

Facts:
  • slow stochastics in "overbought" region
  • this trade was a "hedge" against my short call option
  • 20.32 delta
  • credit received:  $680
  • 9 days 'til expiration (very short-term)
  • FOMC press conference at 11:30 am, PT


Friday, 5/3/2019 (7:26:23 am, PT)

buy back my short put option at $3.00 to protect my profits and remove the risk (of assignment)

PROFIT:  $380 (in 2 days)

Comments:
  • On 5/10/2019 (Expiration), at 8:50 am (PT), Amazon was trading near $1856 and my put option was trading near $24.95!  It's a GOOD thing I closed my trade on 5/3/2019!
  • After some positive comments from the White House (regarding the US/China tariff negotiations), Amazon reversed back up to close at $1889.98 at 1 pm (PT)
  • My short put option would have been fine if I had held it all the way until expiration (1 pm, PT), but who needs the stress?  I was happy to get over 50% of max profit in just two days


CLICK HERE TO LEARN ABOUT PUT-SELLING.
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Tuesday, 4/2/2019 (9:34:14 am, PT)

sell short -1 May 17, 2019  2950 call option at $11.10

Facts:

  • 20 delta
  • stochastics in "overbought" region
  • 45 days 'til expiration (ideal)
  • credit received:  $11.10 x 1 x 100 = $1110


Friday, 5/10/2019 (8:01:45 am, PT)

buy back short call option at $0.75 to protect my profits and remove the risk

COMMENTS:

  • After I placed my bearish trade, SPX continued to rise (bad!)
  • On 5/1/2019, SPX hit a new all-time high of 2954.13 (bad!)
  • On 5/1/2019, my short call option was in-the-money by only 4.13 but it was trading at $26.36 (my "paper loss" was $1526 at the time)
  • Luckily for me, SPX dropped after hitting the new all-time high on 5/1/2019
  • On 5/10/2019, at 8:01:45 am, PT, SPX hit an intraday low of 2825.39 and I was able to buy back my short call option for only $0.75 ($75 for one contract)
  • It's a GOOD thing I closed my trade when I did, because SPX shot back up over 65 points right after I closed my trade!


PROFIT:  $1035

CLICK HERE to see the chart of SPX

CLICK HERE to see two videos of a similar SPX trade
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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!
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Monday, 4/29/2019 (9:28 am, PT)

sell short -1 May 10, 2019  $1892.50 put option at $10.40 (25 delta)


Wednesday, 5/1/2019 (9:04:36 am, PT)

buy back put option at $6.60

Why?
  • to protect my profit
  • FOMC announcement at 11 am (high-risk event!)


PROFIT:  $380 (2 days)

Learn to SELL put options with my FREE lessons here!
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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!
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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.
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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!
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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.
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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).
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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)
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