Options Expiration – July 2017

I came into today with two options left to expire for July. At the open, my order for ADI hit. While ADI was trading at $79.55, I bought to close my one ADI July $80 naked put for $0.39 and sold one ADI September $80 naked put for $3.24 and received $284.30 after paying $0.70 in commission. I brought in $339.75 when I made the trade on the July ADI put and after closing the position for $39.35, I have a realized profit of $300.40.

My other July option was on IWM. While IWM was trading at $142.84, I sold one IWM $142 naked put for $2.42 and received $241.32 after paying $0.68 in commission. I’m letting the IWM July $138 naked put expire worthless. I earned $440.89 when I sold the July put and will have a full realized gain of $440.89 since I’m not paying anything to close the single put.

For the day, I have a realized gain of $741.29 from the two July options. $741 is good, but not really hitting my target of getting better than a 10% annualized gain for the year. Low volatility is killing my returns on top of my risk averse approach this year.

You can find my trade video on YouTube here.