Closing Dec Option short option spread

The last few days have been testing the upper limits on our calls.  The nice thing about selling options and having a longer term object in mind is that if the Dec options are closing in the money and have a cost to buy them back, we simply roll out to the Jan options and collect a higher premium value.  That’s not the maximum profit scenario, but it is effective over the course of the year as has been done a couple times during the last year and does usually occur about twice per year due to excessive volatility.  Anyway I am covering the Dec trade today, last trading day by the way, and the combo for both items is 1.25 pts.  This leaves an overall profit during the month of nearly 4%.  I will get exact numbers before I put the January trade up for you!  Great trading and happy holidays!!!

‹ Quick update:

First New Year trade! ›

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