How I Made 13% in Less Than a Week Passively Selling Premiums
Monday:
I was bearish for the day because the price opened below the VWAP and daily CPR.
When I looked at the 2H chart, I noticed that the price had broken the weekly CPR. The weekly CPR break indicates that the momentum is strong.
So I opened a 25-lots of 4 DTE CCS right away. My spread was exactly below the weekly resistance level. As a result, I was convinced that the price would not reach that level. Price dropped exactly as predicted.
And it hit my profit target of 50% in a single day. I closed at the Ask price right away. The price would have continued to fall, but I didn’t want to take the overnight risk because it was close to the three-month support zone. So I decided to close and reopen positions following the breakout.
Tuesday:
The weekly support was broken, and there was a strong flush down at the 11/28 demand zone.
So I felt confident and decided to open some STBT credit spreads. I opened 25 lots of 3 DTE CCS just above the day’s high. I decided to close it before the release of the PPI data on Friday.
I was bearish for the day because it broke the trend line as well as the demand zone. DMI appears to be in good shape. The weekly stochastic RSI also showed a bearish cross. The next demand zone is at $387, so I was confident in capturing a 50% premium.
Wednesday:
It was in a high demand zone, and my expiry date was Friday. As soon as the market opened. I immediately closed the positions I held on Tuesday.
As I am more bearish than bullish, I did not open any new positions. Also, because it was in the demand zone, I did not take any bearish positions. There is also a macroeconomic event on Friday.
Thursday and Friday:
Friday there’s an economic event on PPI data release. So I’m not taking any positions.
Below is outlook for next week I’m seeing:
Hope to see a price pullback before we flush down.
I’m already up 13% for the week and 25% for the month with a total of $327 for the week and $627 for the month. Remaining I have $373 more to reach my $1000 goal for the month.
Below are the premiums I collected this week:
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