Tuesday, June 6, 2017

Trades for June 5 & 6

Why do I open bull put spread instead of selling a short put?

A bull put spread doesn't use as much margin versus a short put.

Example of a trade that has similar premiums collected:


In this example, the bull put spread utilizes $1345 in margin versus the short put utilizes $5120 in margin.  I can add another 5 more contracts and collect even more premiums for the same amount of margin utilization.  The downside of a bull put spread is you're paying more in commission for opening a short put and long put at the same time.

Trades for June 5th:
  1. Opened 10 bull put spread for $AAPL $150/$145 for 2.30 premium.  Expiry: Jun 9/17
  2. Sold a $NVDA July $130 put for 1.38 premium
  3. Opened 5 bull put spread for $V $90/$85 for 2.65 premium.  Expiry: Aug 18/17
Trades for June 6th:
  1. Added 35 shares @ $14.40 of $ARCX to my TFSA account as I had some USD cash that wasn't being utilized.
  2. Sold a $GIS July $55 put for 0.63 premium
  3. Opened 10 bull put spread for $FB $150/146 for 3.40 premium.  Expiry Jun 16/17


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