Tuesday, March 27, 2012

187% Annualized Profit: Sold MA Apr 405/400 Credit Put Spreads

Closed all the spreads out today for a total profit of $434.  That's almost 94% of the max possible profit.  Better to take the money and run now than risk holding for another 3 days just to save the 30 bucks and commissions, especially with the market being so chaotic lately.

Bought MA Apr 12 put spreads for ($0.24-$0.21) x 100 x 10 spreads = $30 cost vs. $464 premium = $434 total profit

Added more to the put side of the iron condor.  Trendline is still intact, but continues to flatten.  Flatter trendlines are more likely to hold anyway.

Sold MA Apr 12 405/400 put spreads for ($1.74-$1.29) x 100 x 5 spreads = $225 premium received

Added to the put side of the iron condor I have on currently.  The rising trendline continues to hold, though it flattened out a little with the lows on 3/30 & 4/2.  There is also high call OI at 425, so I'm looking for stock to end up somewhere close to that on April opex.  Current probability of max profit is at 88.4%, has actually improved a little since I initially opened the spreads.

Sold MA Apr 12 405/400 put spreads for ($1.64-$1.21) x 100 x 3 spreads = $139 premium received

Was already in Mastercard (MA) put spreads earlier this month.  Closed them out for a profit.  Also have call spreads so these new put spreads aren't costing me any extra margin.  Moving up strikes now that the stock has broken out.  Stock pulled back today after yesterday's big move up.

I placed the short strike underneath the lower Bollinger band, and around where the 50-day sma should be shortly.  Also staying underneath the trendline from the post-earnings move, and using the low from early March as a little support.  OptionsHouse says an 87.4% probability of max profit.  Could have gotten a little more aggressive with this one but I'm happy with my 10% return, especially having already taken a profit and having call spreads on.  Also, peg is currently at 378, though I think that's a little skewed with pre-earnings puts.

Sold MA Apr 12 405/400 put spreads for ($1.96-$1.46) x 100 x 2 spreads = $100 premium received

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