Monday, May 16, 2016

#10 GOOGL Short Put Spread

Expiration: July 15 (59 days out)
ATM:  $730.30
Sell 695 Strike Put
Buy 690 Strike Put
Credit: $1.25
Close the order for 40 cents
The reason for this trade: Google (GOOGL) is a fairly strong fundamental company.  The stock is 5.76% undervalued at this time. The stock just cross over the middle of Keltner channel. This trade has about $35 safety zone.
Delta on the short leg is 26%

#9 Short Put Spread on GS

Expiration: July 15 (59 days out)
ATM:  $155.36
Sell 145 Strike Put
Buy 140 Strike Put
Credit: $1.05
Close the order for 32 cents
The reason for this trade: GS is very close to support level (one year low) of $139.  The stock is about to cross the middle of Keltner channel and we have about $10 safety zone.
Delta on the short leg is 19%