OptionsTrader
Short

DEC1 Options play on WMT

NYSE:WMT   WAL-MART STORES INC
25 11 0
Selling the recent high of $87.07
SOLD -1 VERTICAL WMT             100 (Weeklys) DEC2 14 88/91 CALL @.20
baerrus PRO
2 years ago
Did you just open a credit spread in 88/91 Calls? I like the idea. Dont like that you are only taking a premium of $0.20 per share
Reply
OptionsTrader baerrus
2 years ago
Yes that is the credit spread I sold.

Lot's of people don't like the small amount credits BUT that means I have a HIGHER probability of success which as it is now it has 94% probability of success and already that spread is now just .06...
Reply
baerrus PRO OptionsTrader
2 years ago
I really like the setup. Playing the same move from the downside now. Low probability but great risk/reward.
Reply
OptionsTrader baerrus
2 years ago
It means I am in and out of the trade between yesterdays entry and next Friday so my payday is just around the corner and with it currently at .06 I've already been paid +70% of my trade already, and I like that.
Reply
baerrus PRO OptionsTrader
2 years ago
The Key is you found a great potential reversal situation. How to exploit it is matter of style. For income I use different setups. In a case like this where a possible reversal is present I like to go for bigger bang so to speak :)... just my 2c
Reply
OptionsTrader baerrus
2 years ago
That's all good, this trade for me was nothing more than just a few spare contracts taking some easy money from the markets and to show (via facebook/twitter) that making gains with Options can be very easy and quick and I am always showing trades to challenge the ridiculous notion that gains of 2-5% per month is acceptable and to some a goal to aim for. Just ridiculous...

note:
- high probability position
- easy stock retracement off the highs
- volatility crush on the Options
- theta decay on the Options
all that = $$$, easy $'s
Reply
baerrus PRO
2 years ago
Ok, I got inspired. Opened a debit put spread in WMT Jan 82.5 / 77.5
Reply
OptionsTrader baerrus
2 years ago
What was your entry cost?
Reply
baerrus PRO OptionsTrader
2 years ago
$0.61 for WMT Jan put spread 82.5 / 77.5
Reply
OptionsTrader baerrus
2 years ago
As you say, "Low probability but great risk/reward" at only 72% probability but unfortunately not Theta positive until WMT reaches $80.36, which means it almost needs to close the Earnings gap up.

Lets see how it plays out for you, the race between price movement and Theta decay.

Reply
baerrus PRO OptionsTrader
2 years ago
Hei, you seem to know what you are doing. May I invite you to http://optionsforum.net? I run that forum and it is completely dedicated to options trading. It is a lot easier to share ideas than here. You can post your great charts there in a click.
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out