Hello Traders,

I closed out the below position today.  CELG moved up close to $120 today and the premium came right out of the position. I closed the trade at $0.35 debit.  That is about 55% of the potential profit on the trade.  That is $420 of credit captured less commissions in about one trading day.  Love it! I could have let this go to expiration, but because the market was up so big, and I am not going to be greedy I closed it.  I was able to capture over 50% of the potential of the trade I am not going to hesitate to take the profit and remove market risk.  With the volatility in the market right now we could give up the gains tomorrow and the risk reward is not worth trying to hold for a couple more days in my eyes. The chart below is from Friday. CELG closed today at the 50DMA which was the resistance level I spoke of in previous post creating a potential reversal point and my last reason needed to close the trade.  I can now go find another trade to take advantage of.

Below is the position started on Friday with the updated closing data:

Closed Position for $0.35 debit. Net gain $0.42 ($420)

CELG Bull Credit Put Spread 10cts APR1 15 116P/111P  DTE: 7  Break Even: $115.23

Trade Prices: $1.15/$0.38   Total Credit Received (Max Gain): $0.77 ($770)   Max Loss: $4230

 

Happy Trading,

Option Coach