1/6/2020

 

USB Put Trades:

 

 Closed with gains of 243% & 200% 

 

Two USB put trades were set up with just minutes left in trading this past Friday, January 3rd.

 

The second position (USB 58.50 Put) was filled at time stamp:  15:58:10, less than two minutes before the close.  Price action continued weak and pressed lower up to the last second of trade.

 

The hard part (the very hard part) of this trade was to wait over the weekend to see the results of reading price action.

 

Exit was made at the level shown as USB was gap-lower at the open and momentarily pressed into the trend channel.

 

It’s especially gratifying to note the closed trades were at or near the maximum option price(s) for the day.  Also important to note is that I was the only one closing out positions at the price lows of the day.  I could see the volume on the 1/10/2020 Put option table and my contracts were the only volume....... for a good part of the early session.

 

Within a minute or so, USB started to rise and options prices eroded accordingly.  Events repeat and the immediate erosion after meeting target, is eerily similar to the IBB trade from a few years back.

 

 

Get in, and get out, fast