Sell the Feb 320 Puts, Buy the Feb 310 puts for a credit of .95 cents

Total risk per spread, also the margin, $905.
Maximum return per spread: $95 for a potential ROI of 10.49% before commissions.
19 days left in this trade before expiration. 83% probability of profit according to thinkorswim.

This trade is a little too risky for the OptionGenius portfolio so I am posting it here. Why risky? Because it is not too far away from the current price of 338. There is support at 320 which is good, but if the market turns over, Apple will be one of the first to slide.

If Apple does drop, I will probably exit the trade when I am down 10-15% which is $135. I don’t know if I will have time to post any adjustments on the blog so trade at your own risk.

Credit Spread on AAPL is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

IWM

Sell May 65 Puts, Buy May 63 Puts for a credit of .28 each spread. Get out if you are down 10-15% of the margin. if it goes well, either let it expire or buy it back at .05. I prefer to buy it back because it is 45 days from expiration. Normally you do not want to sell cedit spreads with this much time but with the volatility so low, either you move closer to the money or you go out farther in time to get a decent return.

This trade has a potential profit of 16%. This is an interesting trade because IWM is the etf for the Russell 200 index. Earnings season is coming up and that will affect IWM. Also IWM is at a 52 week high. How long can it keep going up? The talking boxes on CNBC have been calling for a correction for months now. A correction would kill this trade.

But the system I am developing is telling me this is a doable trade so I thought I would post it. I am posting the more controversial trade signals to establish a track record.

I am not using real money on this trade and neither should you. Paper trade only.

Another Free Trade and Updates is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

was channeling and that it would be a good set up for an income strategy.

The only problem was that earnings are after expiration which is in 10 days.

Earnings could move the stock but it also keeps the volatility of the options

high and that means high premium.  There is also a dividend to be paid on the 15th, which is one day before expiration. A dididend will lower the price of the stock by the amount of the dividend which in this case is 10 cents.

His idea was a butterfly. I decided to do a calendar because it is easier to adjust and share it here.

Buy 1 Nov 90 Call and Sell 1 Oct 90 Call. This trade cost me $315. My breakevens are at 86.14 and 94.40.

I feel this trade will work. But it will have to be held close to expiration. 

If POT gets outside the breakevens, exit the trade. or if you are experienced enough, add another calendar on the side of the brreakout.  If POT stays around 90, stay in as long as you can.

Free trade: October 07, 2009 is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com

83.17% probabiliy of profit and a potential 17% gain.

Sell  Aug 30 Puts at .50 and Buy the Aug 28 Puts at .25.

Total cost: .25 per spread.

If you look at the USO chart, there is some resistance at 31.60 so thi strade should do nively.

What do you think?

Free Trade On USO is a post from Option Selling.
To learn how you too can earn 8-12% Monthly Returns Safely and Conservatively check out OptionGenius.com