Expirations Week plays

Here's another Expiration Week Play that I got into earlier today.
SHLD Sears Holding Corp.
Stock $142.21
135 put sold 10 @ 1.6 (+$1,600).
125 put buy 10 @ .40 (-400)
$35 in commissions.

Nice increase in the past few days in the stock price.
Earnings come out before the open on the 17th.
Charts are showing a good support at the 135 level.
Last 2 earnings releases had a nice increase in stock price.
Retail stocks have done well the past earnings period, so it should follow thru here.

Set a bail out point if the stock hits 136.
 
OIH 135 puts are 2.25 and calls are 2.15. OIH closed at 134.89.

NEW 40 puts are .50. NEW closed at 41.11.

I'm not going to trade these, but they are kind of tempting.
 
Quote from jllm03:

Here's another Expiration Week Play that I got into earlier today.
SHLD Sears Holding Corp.
Stock $142.21
135 put sold 10 @ 1.6 (+$1,600).
125 put buy 10 @ .40 (-400)
$35 in commissions.

Nice increase in the past few days in the stock price.
Earnings come out before the open on the 17th.
Charts are showing a good support at the 135 level.
Last 2 earnings releases had a nice increase in stock price.
Retail stocks have done well the past earnings period, so it should follow thru here.

Set a bail out point if the stock hits 136.
More...

Bailed out with 10 min to go before the market close. With earnings coming out BMO tomarrow, I took my money off the table.
Closed out the 135p @ .60 and the 125p @ .15.
Nice profit for hold it for a couple days.
 
Better be careful!

I know 2 option traders that like to sell spreads like you do to risk much more than take in. Both was happy for several months until a few news/halt to have them suffered the full loss. Now they are looking for a better strategy.
 
Quote from jllm03:

Bailed out with 10 min to go before the market close. With earnings coming out BMO tomarrow, I took my money off the table.
Closed out the 135p @ .60 and the 125p @ .15.
Nice profit for hold it for a couple days.
More...

the profit came from favorable price action and not " for holding it for a couple of days'.
Anyway , congrats
 
Quote from IV_Trader:

the profit came from favorable price action and not " for holding it for a couple of days'.
Anyway , congrats
More...
Your right...
The price was up because of the earnings report that was to come out on Thursday morning.
I saw the opportunity to run this spread and take some of the premium that was offered, and then get out before the announcement. (Old saying...buy the on rumor, sell on the news... is true).
I did not want to hold the spread thru the announcement, but I would have been safe if I did.
Better off safe, than sorry.
 
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