ASML was hovering around the last week close 88.10 for a few days before it went up, maybe due to the tapering announcement. It close at 91.48, above both of our strike price. The option expired worthless.
This is the closing trade with 174.82 profit.
This trade is an evidence of the benefit of selling that i described in this Selling Options post.
For Options seller, say Put Options, we just need to be right that price didn't drop a lot. We will make a profit 4 out of 5 scenario below:
1. Stay flat (win)
2. Rise a little (win)
3. Rise a lot (win)
4. Drop a little (win)
5. Drop a lot (loss)
I was bullish on this stock when it had a pin bar at the last resistance turned support. And it was on its uptrend. However, it didn't went up as expected. It closed with a drop a little that still result in a winning trade.
Going forward, I will blog on live trade instead of demo trade. This will be the last post on demo trade.
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