I continue to look for Money Flow Buy signals that meet my 2017 trading plan. ( Scroll down in my Blog to read the plan) A very brief reminder; I am selling puts on Money Flow Buy signals. Its a bullish way to acquire stock and reduce cost basis.
One of my first trades using this strategy was JPM. Back on January 17th, I sold the FEB $85.00 put and collected 2.17 in premium.
One of my first trades using this strategy was JPM. Back on January 17th, I sold the FEB $85.00 put and collected 2.17 in premium.
You can see the MFB signal in the chart above. At the time, JPM was selling for roughly $85.22, and on the date of the signal, the -.35Delta option was the 85 put. Since then, the stock has rallied to roughly 90 bucks. Well, earlier this week, ahead of February expiration, I rolled my sold put into March expiration.
I rolled to the -.26D put in March ( I like to stay in .30 -.40 delta, however there wasn't an available option at the time of the roll) I am now short the $85.00 MAR put. I collected an additional .65cents credit for the roll. That means I have now collected $2.82 in premium, meaning that if the stock gets "put to me" I'm insulated from loss down to $82.18. Nearly 10 points lower than it currently sits. I'd love to have the stock "put to me" but, I'll be happy collecting monthly premiums and reducing my basis 'til that happens.
I have several rolls coming up in the March cycle.... stay tuned!
Happy Trading!
AA
I have several rolls coming up in the March cycle.... stay tuned!
Happy Trading!
AA
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