G'morning all,
This morning I made a few option moves with one of my favorite stocks.
With AMZN trading around 171 and 4+ days to go...
1. I sold 20 of the weeklies for AMZN at the strike of 150. Net income of 426. This needed 38,175. of maintenance which = a return of 1.1%
2. I sold 10 of the weeklies for AMZN at the strike of 155 net income of
287. This position required a maintenance of 20,186 = a return of 1.4%
Reasons for the moves...
1. With a little less than 5 days to go and over 21 point of cushion I like this move. Only 1.1 % gain but that is for a week.
2. Also less than 5 days to go but only 16 point of cushion. I lowered my volume to just 10 puts for safety. The gain is better than the 150 strike but the risk go up.
I closed the AAPL puts at a very small profit of $21.
I had opened them for 360 and closed them 341. The position was eating up to much maintenance and my account went up 353 by moving into the AMZN. Plus I have some maintenance left over to use on another position as the week progresses.
3 comments:
Impressive that you sold your AMZN 150 puts at $0.22...nice premium with a lot of cushion! It quickly dropped to about $0.12 without much of a move in AMZN stock. I sold some 155s but will need to watch closely with smaller buffer.
Yes I did hit it pretty good and could close now and make a pretty good return especially for one day. But by Wednesday maybe I will roll into the ??? Depending on AMZN stock. I will be in Montana starting on the 4th of Nov and be out of touch for 10 days, so i will either close or put close stops on all positions.
Montana sounds amazing. Getting cold there now, s/b great fishing. I am in Hawaii now but grew up in CA and miss the changing weather. Your strategy makes sense. You could even bracket your positions with a stop order on the high side and a limit order on the low side in case premiums drop fast and then recover. Never wrong to take profits!
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