Hi all, I should start today's trade activity by telling that these trades might not be for all traders. These are my trades and the reasons behind them. They are not recommendations just my trades.
10/18 With AMZN dropping a small amount i decided to roll my 60 of the 130 strike puts that expire on this Friday, into the 135's. Here are the numbers..
Sold 60 puts on 10/15 Friday for + $1450
bought to close today (Monday) for - 890
One day profit of + 560
10/18 (Monday) I sold to open 60 135 puts
for + 1635
later this morn I sold 15 more of the 135's for - + 389
Net result in the account today is + 2024
These puts expire on Friday. So that is a little over 404 per day for these. But I should again point out that Thursday after trading hours AMZN reports their earnings for this QTR. I have not decided on what actual number I will use for a trip wire to close or keep open these puts.
Generally I do not keep a position open during a earnings report. Buttt, and a big one is that I might have lots of cushion between the current stock price and the strike i am using (135). The rational is that with the 135's and lets assume that AMZN is trading round 160. That means with one day of trading left after the report AMZN would have to drop over 25 points. Very unlikely. But it can and has happened. So I will have a plan that will have a high probability of success, meaning that they expire worthless on Friday night. If you have been reading these post you now know that I do not hesitate to either take profits or a loss if that is what make me feel comfty... If you have read my book you know that I went through the wringer 9 years ago. Losing over a million dollars by putting my head into the sand. I do not want to experience that nightmare again. Take profits--take losses but have a plan. It is easy to be the deer in the headlights when Ca-Ca hits the fan.
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