Well, I expected the trade to last more than one day, but I'm out with a nice profit. The target was the 200 DMA which I estimated would be about 194 when price hit it. This morning when the stock price broke 195 around 10:40am ET I started micro-managing the trade on the 3 minute chart.
Price hit a swing low at 194.32 and started creeping up. It looked like a bottom was forming, at least on the 3 minute chart, plus around 10:30am ET is often a market reversal time, and we were overdue at 11:00am when price pierced the 3 minute 8 EMA. So, to risk staying in for another few pennies of profit on the option, literally a few pennies, versus capturing a sizable profit very close to my target, didn't seem like a good risk/reward.
So I sold the AAPL Dec 195 Put for $7.45. With a cost yesterday of $3.20, that's a profit of $425 per option, or a 133% gain. Not bad.
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