Perfect Week to Write Weekly Options

Good morning TRADEPROs,

This week is shaping up to be another good opportunity for a quick cash generation trade using weekly call options.  What makes the market so ideal?

  1. Markets are closed this Friday in observance of Good Friday
  2. This means, weekly options expire on Thursday April 2nd


So fire open those options trading platforms and build out a few credit spreads.  Here is one I placed this morning on my account.

Apple, sitting inside a pennant, and holding the $121 support.  The stock has high probability of closing above $121, (85% according to options markets)

  • Short 10 April 2nd 121 Puts – $0.39 premium generation
  • Long 10 April 2nd 119 Puts – $0.15 cost
  • Net total credit:  ($0.39 – $0.15) x 10  x 100 = $240
  • If price above $121 on Apple tomorrow as of close, the money is all yours
  • Max loss is (121-119 ) x 10 x 100 = $2,000
  • This loss comes with a 5% probability, so $100 expected loss on $240 cash generation

Now that’s a TRADEPRO setup!

Good luck and good trading, and from us to you and your family – Happy Easter!