Selling Put Option and Make $1000 a week Trade Journey #1

This is the first post for my journey. It is my first financial blog journey as well.

I have been documented my trade for quite a bit of time now.

From this date on, I will try as much trade as possible so I can remember what I did and wrong in the future myself. Today's Trade:

TSLA: purchased 2 TSLA @ $505 (I made approximately $1000 this week already so I am converting that money to Tesla Stock)

TSLA: 10 Nov 27 475/480 Put Vertical P 1.6895 DOCU: 10 Nov 27 205/210 Put Vertical P 0.9696 PINS: 5 Nov 27 63 Puts P0.8748

Close Trade: 10 Nov 395/400 Put Vertical P 0.02

How to read my trade: Let me give an example of how I read this post of selling put. I will give an example of first selling put contract

TSLA: 10 Nov 27 475/480 Put Vertical P 1.6895

TSLA (it is a symbol of a company which in this case is Tesla)

10 is representing how many contracts I have sold. In this case, I have purchased/sold 10 contracts.

Nov 27: it is an expiration date. So it has 8 days to expire from today.

475/480 Put Vertical: first number 475 is the purchased contract. 480 is the selling contract. Since 480 is greater than 475, I should theory receive a premium. It is closer to the actual price which is $505 at the time of the purchase/sell.

P 1.6895: It is a premium with the commission component. Theoretically, If the price of the Tesla does not fall below 480 on the market close of the next Friday, I will be receiving $1.6895 per share. Each contract is 100 shares. I have sold 10 contracts, which means I have sold 1000 shares. In this case, I would receive $1.6895 * 1000 = $1689.5 if I let the option expire.

However, in most case, I actually buy it back before the market close or sometimes day or days.

Happy Trading

======================================================================= #sellingPut #optiontrade #sellingput #putvertical #PutVertical #trading #stock #option

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I am not a financial advisor. Any trades listed are my own personal trades and meant for educational purposes only.
Option trading bears high risk and high return strategy for beginning trader.