Premium Selling Trades #1, #2, #3, #4 for August 12th Expiration week

The following is the first, second, third, and fourth premium selling trades for August 12th expiration: The goal is to try to get around 3 premium selling ideas per week targeting 10-20% in gains. Given the nature of the trade all of the trades will have stops set in place given the exponential loss potential. Premium selling is a great way to bring in cash flow as well as put on a trade playing for a range in a stock.

1st Trade: CMG 380/385/420/425 iron condor at $.65. CMG has shown a tendency to hover around pin areas, which is what 400 represents. Additionally it has held 390 over the last month. Should it retrace to 420 I think it fails as it would hit Fibonacci resistance at the 50% retracement line. A fair stop on this trade would be $2.

2nd Trade: GOOGL 780/785/820/825 iron condor at $.71. GOOGL has been tight ever since the ER release and I do not see it moving more than a couple dollars a day this week. It should stay within the bounds of last weeks range.

3rd Trade: TSLA 215/220/235/240 iron condor at $1.37. TSLA has been stuck for a couple weeks and given that we are receiving 1/3 of the distance between the strikes I think the r/r is quite attractive on this trade. I am playing for the range to continue through this week.

4th Trade: PCLN 1355/1360/1455/1460 iron condor at $.83. Gap support at 1365, last weeks high is 1430, I dont think it gets past either level

 

Max Ganik (Maxzak) is a 19-year-old stock and option trader. As of June 2016, Max has been a member of Option Millionaires for over 3 years, and has been a contributor for over 2 years. Max regularly writes blogs for Option Millionaires and has also presented webinars.

Max is the founder of Ganik Market Strategies. He is a member of the Leaders Investment Club. Max has been interviewed by the New York Times, CNBC, and Bloomberg TV. He was also the first high school member of the New York Society of Security Analysts. Max is currently a member of the University of Michigan's premier investment club, Michigan Interactive Investments.

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