Category: Trading Journal

What is the outcome?

As I mentioned, I couldn’t wait to start, and I jumped right in by selling puts to collect premium, and later, testing out a bull put spread.

Important Notes:
Although I attempted to sell a PUT option in my first options trade, please NEVER NEVER NEVER SELL NAKED PUT (you must have the money to buy the 100 shares at the strike price in the worst case scenario). I sold this PUT option at a low strike price, intending to buy 100 shares if the price dropped. However, I expected the share price to rise, allowing me to profit from the premium collected.

Here are the details of the options contracts I placed:

1. $MARA – Sell Put (Closed Early for Profit)

• Contract Type: Sell Put
• Strike Price: $12.00
• Stock Price (at entry): ~$14.00
• Open Date: March 24, 2025
• Close Date: May 9, 2025
• Original Expiry: May 16, 2025
• Premium Received: $89.00
• Option Bought to Close: $0.12 ($12.00 total)
• Commissions (Open & Close): $ 2.84 total
• Net Profit After Commission: Premium Received – Option Bought to Close – Commissions ($89 – $12 – $ 2.84) = $74.16

This was my very first options contract. I sold the put with the hope of collecting the premium, and the trade played out nicely (I will buy the 100 shares at cheap price if the share price drops). The stock price stayed well above the $12 strike, so I closed the trade one week early at just $0.12. After deducting commissions, I walked away with a solid $72.74 profit.

It was a small but meaningful win — it helped build my confidence and confirmed that a simple strategy like selling puts can work when done with a plan.

Screenshots are taken from the Fund Details page from Moomoo app:

The first screenshot shows that I sold MARA PUT option and received $89 premium by paying $1.42 commission.

The first screenshot shows that I buy back MARA PUT option to close it by paying $12 premium and $1.42 commission. And my net profit is $89 – $1.42 – $12 – $1.42 = $74.16

2. $SOXL – Sell Put (Closed Early for Small Profit)

• Contract Type: Sell Put
• Strike Price: $9.50
• Stock Price (at entry): ~$13.20
• Open Date: May 2, 2025
• Close Date: May 12, 2025
• Original Expiry: May 16, 2025
• Premium Received: $17.00
• Option Bought to Close: $0.02 ($2.00 total)
• Commissions (Open & Close): $2.84
• Net Profit After Commission: $12.16

A short-term trade that moved safely in my favor. With most of the premium collected and only $2 left on the table, I decided to close it early and lock in the profit. Another small step forward in learning how to manage exits.

3. $SOXL – Bull Put Spread (Expired with Full Profit)

• Strategy: Bull Put Spread
• Stock Price (at entry): ~$18.82
• Trade Date: May 12, 2025
• Expiry Date: May 30, 2025
• Leg 1 – Sell Put
  • Strike Price: $15.00
  • Premium Received: $44.00
• Leg 2 – Buy Put
  • Strike Price: $14.00
  • Premium Paid: $29.00
• Net Premium Collected: $15.00
• Total Commission: $2.84
• Net Profit After Commission: $12.16

This was my first spread strategy — and it worked out exactly how I hoped. The stock stayed above $15 through expiry, and I kept the full premium. Limiting risk while collecting income is something I’ll definitely keep exploring.

I managed to find a screenshot I took on 3rd Option Trade that has expired. The total gain from this vertical spread is $15.00 (Note: Bull Put Spread is on of the Vertical Spread Strategy).

All three trades turned out positive — not massive wins, but safe, real, and encouraging. More importantly, I learned by doing:

• Selling puts is a solid way to get started and generate income.
• Closing early once most premium is collected helps avoid unnecessary risk.
• Spreads give me confidence with limited risk when I want to trade closer to the stock price.

In the next post, I’ll break down how I selected these trades, what tools I used to analyze them, and what I plan to improve going forward.