Well, as I said, I put in an order before the opening for .40 for the AMZN puts. The order was ignored...lol. The premium was dropping fast as AMZN was ticking up. So instead of chasing the premium and always being behind the curve, I just put in an order for At The Market. These went through at .27. These puts need approximately 25.02 each for maintenance. This equals a profit of a tad over 1% for three days.
*A quick perspective on profits.
I am on a BOD for a home owners association. We have extra funds in our reserve account that require safety and this results in us depositing our funds in MMKT accounts. While searching for some rates with local banks yesterday, I found that a common rate is .9% for a year. So with my private account when i can get over 1% in three days, you've gotta like that.
I am often asked, how I can be happy getting only premiums such as today's .27. I try to keep the perspective that end results are what count.
If I can trade and maintain around 3% MONTHLY, I am a happy camper. As I say in my book, "I just continue to pick up the crumbs around the table."
Good trading all.
5 comments:
Those 150s you sold at .27 are down 50% after a few hours. Wish I could have gotten in but not enough spare capital for the margin. Margin is much higher when these are close to the money. I guess I could do a put spread but that leaves me with very small premium. Oh well, it's been a good month at about 6% so how can I complain?
good for you Glenn. a great profit for the month. Try to avoid the mind set that you are bullet proof. After 13 years I still fall into that mode without even being aware of it. Slowly risk analysis falls to the side and you can start making trades that put several months profits in jeopardy.
Jer
i sold calls on the netflix several times since you left town and net about 1200 dollars with a huge safety cushion on weeklies.. very good play
good plays. In a down mkt or one that is treading water, naked calls work as well as nakeed puts. As I mentioned to Glenn above, continue trading but maintain caution and safety and money is nearly free...
Agreed on the comment about overconfidence. Usually results in bad decisions. This month was good but last month was rough.
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