As we drew this map that helps us define risk, we put together three different strategies this week.
We like making money as the markets go up and down. So our strategies are designed after such a manner.
We put together a naked Call sales strategy and sold 250 calls at 116 on Monday late morning. This was a safe enough level that we believed the markets would not make this move even in a good week.
We were right up to this evening. We are trading comfortably at 113.05. Even on a huge day Friday we will not reach this level. So we will make a good profit after expiration. 250 options at $6.00 each will bring us $1500.00. After this, we put together a naked Put sale also. This was a little easier since we are now trading against the trend.
The 108 level was easier for us to sell at a higher rate on the same day at the same time because the markets have been predominately bullish. This has allowed us to double our profits from selling the naked call.
We expect Friday to expire and all our profits stay in tack.