Successful Arbitrage: Short-Term Trading on SOXL Put Options
I first sold a SOXL $19.5 put option (expiring on March 28, 2025) at $1.08, then bought it back shortly after at $1.01, securing a profit of $0.07 per share (or $7 per contract).
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🧐 Strategy Behind the Trade
1️⃣ Short-Term Arbitrage to Lock in Profits 💰
• Given SOXL’s high volatility, I anticipated a temporary pullback in the option price and took advantage by selling high and buying back lower, capturing the price difference.
2️⃣ Quick Execution for Maximum Efficiency ⏳
• This trade was completed in just 16 minutes (sold at 00:41:51, bought back at 00:57:23), demonstrating the effectiveness of short-term options trading while avoiding the risk of a sudden market reversal.
3️⃣ Exploiting High Implied Volatility (IV) for Premium 📊
• With SOXL’s IV exceeding 90%, options carry a high premium, making it a great opportunity to sell at inflated prices and buy back when the premium decreases, ensuring a steady profit.
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📈 Trade Summary: Consistently Accumulating Profits
This trade exemplifies my strategy of leveraging short-term options trading to generate consistent profits in volatile markets. By focusing on short-term trends and price fluctuations, I can secure quick wins even in a choppy market.
Moving forward, I will continue refining this strategy to further optimize entry and exit points and maximize profit efficiency!$SOXL 20250328 19.5 PUT$
| Side | Price | Filled | Realized P&L |
|---|---|---|
| Buy Close | 1.01 1Lot(s) | +5.14% Closed |
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