¶ … Trades
For AAPL, on June 20th, 2016, I sold 50 Jun17 90.00 -- to open for a total of $59,750. On, July 6, 2016, I bought them back to close at 11.55 for a total of $57,750 -- for a total gain of $2,000 minus $65 for commissions/fees.
For MSFT, on the same dates, I bought 200 Jun17 50 calls at 4.70 to open for a total of $94,000 and sold to close 200 Jun17 50 calls at 5.15 for a total of $103,000.00. Total gains on this trade were $9,000 minus $228 in commissions/fees.
For CHK, on the same dates, I sold 300 Jan17 4.50 calls at 1.15 for a total of $34,500 and bought to close 300 Jan17 calls at 1.03 for a total of $30,900. Total gains on this trade were $3,400 minus $335 in commissions/fees.
For XOM, on the same dates, I bought 200 Jun17 92.50 calls at 5.15 for a total of $103,000 and sold to close 200 Jun17 92.50 calls at 6.30 for a total of $126,000. Total gains on this trade were $23,000 minus $128 in commissions/fees. This was by far my most profitable trade.
Total gain for the four trades amounted $37,400 minus fees/commissions, which totaled $756.
Each trade was thus a successful trade and net gains were positive for a successful three weeks.
Gains minus fees equaled $36,644 in the positive.
Discussion of the Performance
The performance I experienced occurred because the underlying of each option moved...
Jobs leaves much to be desired). The
stock was entering into a reversal chart pattern after having reached new highs in earlier months and with the overall economy souring, I surmised that AAPL was due for a retreat. Thus I sold it short by selling 50 Jun17 90 calls at 11.95, and bought back on the dip of the underlying three weeks later at 11.55, which resulted in a gain of $2,000 minus fees. Had I shorted more options, the gain would have been higher, but I wanted to
play it safe in case my hypothesis was incorrect and the stock rebounded. Fortunately, Brexit occurred and markets everywhere became very uncertain, which allowed me to capitalize on a dip in the stock…
