How I Made 13% in Less Than a Week Passively Selling Premiums

VR Investments
3 min readDec 7, 2022

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:

Check out the below if you want to master credit spreads,

Secrets of Credit Spreads

Secrets of Central Pivot Range for Option Selling

I have explained in depth on how I make 10–12% a week passively selling premiums. This book is not just another technical analysis course. It’s my years of backtesting / hardwork and my entire trading system condensed in a PDF document.

Feel free to download, take notes, backtest and utilise it effectively :)

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VR Investments

I write about passive income strategies, option selling and ways to optimize it.