Options trading isn’t just about buying and selling contracts—it's about timing, strategy, and understanding market momentum. In my latest trades, I navigated a mix of puts and calls across UNH and RDDT, leading to some solid profits and key insights into my trading approach.
Trade 1: Selling a Put on UNH
Symbol: UNH
Option Type: Put (Sold)
Strike Price: 255
Expiration: 5/16/2025
Contracts: 1
Entry Price: $684
Exit Price: $3
Profit: $681
Analysis
Selling a UNH 255 put turned out to be a great move. As the stock price remained above the strike, the contract lost value fast, letting me pocket a solid $681 profit. This trade reinforces the power of selling cash-secured puts when volatility presents a premium opportunity.
Trade 2: Buying a Call on UNH
Symbol: UNH
Option Type: Call (Bought)
Strike Price: 295
Expiration: 5/23/2025
Contracts: 1
Entry Price: $1175
Exit Price: TBD
Profit: Open Position
Outlook
This call is still active, meaning there's a window to adjust based on market action. If UNH trends bullish, this contract has potential to gain value rapidly, offering an opportunity to secure profits or roll the position. Keeping an eye on support levels will be crucial before expiration.
Trade 3: Buying a Call on RDDT
Symbol: RDDT
Option Type: Call (Bought)
Strike Price: 230
Expiration: 11/21/2025
Contracts: 1
Entry Price: $510
Exit Price: $350
Profit: $160
Lessons Learned
This RDDT call was a profitable trade, but the exit price was lower than ideal. Managing greeks, particularly theta decay, could improve future outcomes—adjusting entry points or using spreads might be beneficial. Still, a $160 profit means capital was effectively deployed.
Final Takeaways
These three trades showcase the balance between selling premium and buying directional calls—each strategy has its strengths depending on volatility and market trends.
Selling puts in the right conditions can yield quick wins with minimal capital risk.
Buying calls requires careful monitoring of price movements and time decay.
Exit timing plays a massive role in securing maximum profitability.
Looking ahead, refining entry points and adjusting exit strategies will be key to maximizing future gains. How do you optimize your trades? Let’s keep refining the strategy together.
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