Happy Monday After options expiration. Monday gives us a fresh start and a new look at the markets after a weekend of looking at charts and reading about economic fundamentals. After all the reading and studying, I know one thing. I don't know anything!! I don't know if the markets are topping or if the markets are going to continue to rise. All I know is life goes on, and if I trade with time on my side, I will have at least that to my advantage. Selling options gives us that advantage. The options I will be selling will expire in 1-3 months so as long as there are no big, big surprises I will make money on these trades.
trade #1 Sold to open Celgene April 20 62.5 puts
With this trade. I will make $45 for every contract I sell if Celgene is above 62.5 by April 20, 2012. Based on a whole bunch of calculus equations the odds of that are pretty good, above 90%. With trading we never know but this is a trade I made.
Trade #2 Sold to open UTX May 18, 65 puts
The last time UTX traded at the 65 level was in September of 2011. UTX May 65 puts were sold for $55 for contract. If I am on the wrong side of this trade I will get out of this trade if the option price doubles, or if the stock goes below my strike price of $65 anytime before May.
