Trade Log: Closing MSTX Apr 25 $31 Put – Total Credit Profit $286
MSTX put position was fully closed in a $100,000 account by buying back the April 25 $31 put for $20. This concludes a multi-week options-selling cycle that generated a total credit profit of $286 through several rollovers.
Trade Summary:
- Underlying Asset: (MSTX)
- Final Position Closed: April 25, 2025, $31 Put
- Buyback Price: $20
- Total Credit Earned (over 4 weeks): $286
- Account Size: $100,000
Strategy Recap:
This trade began four weeks prior with the sale of a higher-strike put and was managed through multiple weekly rolls, gradually lowering the strike price and collecting additional credit each time.
Key execution points:
- Consistent Rolling: Weekly rolls captured time value and allowed flexibility in response to MSTX’s price action.
- Strike Adjustment: The strike was lowered from $33 to $31 to reduce assignment risk while boosting collected premium.
- Disciplined Exit: The final buyback at $20 locked in profits while freeing up capital for new opportunities.
Results:
- No Assignment: Avoided assignment throughout the life of the trade by proactive rolling.
- Premium Realized: $286 of total credit was captured without taking ownership of the shares.
- Capital Efficiency: Maintained risk control while generating consistent income over a one-month period.
Conclusion:
This trade exemplifies how systematic rolling and disciplined premium selling can generate strong returns over time, even without directional bets. The position was closed profitably, preserving capital and preparing the account for the next setup.
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