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Options Strategies
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Re: Week 18 // Final Tally // Back on Track with 30% Gain in 2 DaysFrankly, while yesterday was a day of finding resistance levels for a few stocks, which worked out well for 1 1/2 days, today was finding how far down one could sell call spreads. There are times where I wish to tell traders reading this blog that they should double, triple or more particular trades, as I know (with 99.9% confidence) that they will expire worthless. Such was the case with AMZN call spreads today. I did learn and follow one past lesson: not to sell put spreads against all those call spreads. So, on a day of extreme volatility, what actually transpired? 1) STO NVDA Put 150 and BTO NVDA Put 149 Filled at .24. Closed for .50. Margin used = 1.00 - .24 = .76 1b) STO NVDA Call 155 and BTO NVDA Call 157.50 Filled at .53. Expired worthless. 2) STO NVDA Put 150 and BTO NVDA Put 149 Filled at .34. Closed for 50. Margin used = 1.00 - .34 = .66 2b) STO NVDA Call 155 and BTO NVDA Call 157.50 Filled at .53. Expired worthless. 3) STO AAPL Put 170 and BTO AAPL Put 167.50 Filled at .60. Closed for .76. Filled at .51. Closed for 1.10. Margin = 2.5 - .60 = 1.90 4) STO AMZN Put 1650 and BTO AMZN Put 1647.50. Filled at .75. Closed for 1.08. Margin = 2.50 - .75 = 1.75 4b) STO AMZN Call 1700 and BTO AMZN Call 1702.50 Filled at .85. Closed for 1.15. 5) STO AMZN Call 1720 an BTO AMZN Call 1722.50 Filled at .70. Expired worthless. Same margin used in 4 and 4b. 6) STO AMZN Call 1700 and BTO AMZN Call 1702.50 Filled at .91. Expired worthless. Margin = 2.50 - .91 = 1.59 7) STO AMZN Call 1680 and BTO AMZN Call 1682.50 Filled at .95. Expired worthless. Margin = 2.50 - .95 = 1.55 8) STO APPL Call 170 and BTO AAPL Call 172.50 Filled for .71. Expired worthless. Same margin used in (3). 9) STO AMZN Call 1650 and BTO AMZN Call 1652.50 Filled for 95. Expired worthless. Margin = 2.50 - .95 = 1.55. ================================================================ Math (G/L): +.24 - .50 + .34 - .50 + (1/2) * .53 + (1/2) * .53 + .60 - .76 + .51 - 1.10 + .75 - 1.08 + .85 - 1.15 + .70 + .91 + .95 + .71 + .95 = +2.95 Margin Used = .76 + .66 +1.90 + 1.75 + 1.59 + 1.55 + 1.55 = 9.76 Percent Gain = 2.95 / 9.76 = 30% This week's trades helped erase much of last week's losses. Lesson learned this week: There's always a moment where you figure out a pps is going to tumble through your put strike or climb above your call strike. It's not when it actually crosses through that strike, but about 5-10 points sooner than that where you say to yourself "I have a bad feeling about this". What to do? When the feeling strikes, take no chances and close out your at-risk position(s) before they cost you more than you'd like. I did not do that today, instead hoping that the resistance lines I identified when making the trade would hold up. But today was NOT a day for having much faith in resistance lines. Cheers. |
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Msg # | Subject | Author | Recs | Date Posted |
1446 | Week 19 // Overview for 13-14 December Trading // | sandiegodude2000 | 2 | 12/13/2018 4:42:24 AM |