Monday, June 18, 2018

Rolling clarified further: delays profits until the next expiration then wahoo!

A much better week this week! Since AMZN's volatility was so washed out after last week, I tried TSLA this week and had a similar experience:



Part of the boost was Elon Musk buying $25 million worth of TSLA stock this week ...


But selling the 8 delta call was way up at 365, so enough room that I didn't have to roll out to the next week (though I was watching carefully) but all 4 legs expired worthless as desired.

Even better, the narrow winged SPX trade I rolled over Monday (unnecessarily, it turned out, as the market closed just below my 2785 short call) came in fully for Wednesday along with the other trade I had on (short 2805 call: plenty of room) ....

And this was "expiration week" (for monthly options) so I also put on the Fabulous NDX trade, which won again and returned about 11% on a wide-winged 1 standard deviation iron condor ...

And the way I'm thinking about the effect of rolling ... based on this week it seems like compressing a profit spring:

And letting it burst out the next week ... one account I'm trading went from $34400 to $40900 this past week ... though this includes about $900 in scalping profits.


Probably another TSLA 4-day trade going on tomorrow a.m. and I'll report again next week!

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