My options trading has been a little quiet over the past couple of months. I expect this to change now that tax time is over. Today, I closed a position with a very nice profit.
I decided to close out a put I had sold in February. PM has gone on a run and I have a large position already. I decided to go ahead and take some profits instead of waiting until next January. In less than 3 months, this put earned me a cool $557!
What I LOVE about selling puts is that I’m doing so mainly on companies I already own or want to own more of. This way it’s a win-win for me. I’m paid to wait or I get assigned the stock at a price cheaper than where it was trading the day I sold the put.
Here’s a look at a 3-month chart of this put since I bought it:
I mentioned the original trade here.
I originally sold an $80 PM Put on 02/03 for 9.00 that expired Jan 17 ’15 collecting $900 in premiums.
Today I Bought-To-Close 1 PM $80 Jan 17 ’15 Put @ 3.43′
I profited $557 before commissions.
I currently have 10 open options positions and a total options profit of $675 for 2014.
My options page has been updated accordingly.