Yesterday around 11:15 I sold to open 1 SSO Apr 19 Put for $.70, and received $67.05 after commissions. I couldn't pass up the chance to capitalize on the last two weeks until April Expiration. When SSO (and SPY) were unable to retreat lower than last weeks highs, I took it as a bullish signal. I've marked up an SSO chart to the left, noting my breakeven at just below the 30 MA, and in a consolidation area at the end of February. I was going to sell the Apr 20, but the 19 had a decent premium as well, and had a little more protection. Since the S&P rallied in the afternoon, this put is already at $.5, giving me a $20 profit in one day.
The TOS margin requirement is only $273.10, giving me a ROM (70/273.10) of 25.63%, and an annualized return of 99.61%. I'm currently about 14% OTM, with 14 days until expiration. I'll let this expire, or if chance happens, take the assignment.
EDIT: I sold the Apr 20, not the 19. I thought I sold the 19, so now I'll be triple checking to make sure I sell the right strike (because double checking has failed).
No comments:
Post a Comment