Here we go, my third Money Flow Buy of 2017! Quick review, I'm selling .30-.40 Delta puts in stocks that generate a Money Flow Buy signal. My hope is that I acquire the stock at a discount. If the sold put doesn't result in the stock being"put to me", I'll sell another put in the next month, each time reducing my cost basis by the amount of premium collected.
So, my trade this week was Facebook, They are past earnings, above a rising long-term moving average, and strong industry & strong trend. I've checked all my requirements on this one.
$FB generated a Money Flow Buy Tuesday 2/7. I sold the March '17 Put that fell between .30 - .40 Delta, in this case it was the 130 strike. I collected 2.30 per contract sold. If $FB is below 130 on or a near expiration, I will "be put" 100 shares per contract sold... if $FB is above $130 at expiration, I keep the premium collected, and I'll sell another put between .30-.40 delta.
If the stock is put to me this cycle, I will have reduced my cost by $230.00 per 100 shares or 2.30 per-share.
So, my trade this week was Facebook, They are past earnings, above a rising long-term moving average, and strong industry & strong trend. I've checked all my requirements on this one.
$FB generated a Money Flow Buy Tuesday 2/7. I sold the March '17 Put that fell between .30 - .40 Delta, in this case it was the 130 strike. I collected 2.30 per contract sold. If $FB is below 130 on or a near expiration, I will "be put" 100 shares per contract sold... if $FB is above $130 at expiration, I keep the premium collected, and I'll sell another put between .30-.40 delta.
If the stock is put to me this cycle, I will have reduced my cost by $230.00 per 100 shares or 2.30 per-share.
I also entered a money Flow Buy signal in $GS ( Goldman Sachs). I must have forgotten to update the blog, sometimes that happens when the day jobs get busy, apologies.
$GS met all of the rules I've set for entry. Including above a rising long-term moving average, strong industry & strong trend and past earnings.
Looks like I sold the 235 strike put in March '17 for a 5.00 credit. ( this strike would have been between 30 - 40 Delta on the day i initiated the trade) Looks like $GS has given up a little ground since then, as I am down slightly on the trade. Not to fear, the goal of the strategy is to have the stock put to me, so as long as it dosent give up much beyond $235, I'm a happy camper. ( Just kidding, I don't camp!)
I'll keep you posted on both of these trades, as well as my first trade of the year, which was $JPM. As of the time of publication of this post, I am up 334 bucks on a 2 lot at the 85 strike for the FEB '17 expiration. Getting close, both in terms of price going ITM and expiration. I will manage this trade in the next week and report back.
Happy Trading!
Looks like I sold the 235 strike put in March '17 for a 5.00 credit. ( this strike would have been between 30 - 40 Delta on the day i initiated the trade) Looks like $GS has given up a little ground since then, as I am down slightly on the trade. Not to fear, the goal of the strategy is to have the stock put to me, so as long as it dosent give up much beyond $235, I'm a happy camper. ( Just kidding, I don't camp!)
I'll keep you posted on both of these trades, as well as my first trade of the year, which was $JPM. As of the time of publication of this post, I am up 334 bucks on a 2 lot at the 85 strike for the FEB '17 expiration. Getting close, both in terms of price going ITM and expiration. I will manage this trade in the next week and report back.
Happy Trading!
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