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Profiting From Options Trading Research Paper

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¶ … 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…

Sources used in this document:
Works Cited

Popper, Nathaniel. "The first big company to say it's serving the legal marijuana trade?

Microsoft. Wall Street Journal, 16 June 2016. Web. 21 June 2016.

Yan, Sophia; Petroff, Alanna. "European stocks sink and pound tumbles over Brexit fallout." CNN Money. 6 July 2016. Web. 6 July 2016.

Figure 1. AAPL trade.
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