Today, I closed a trade against Line Energy (LINE) which I opened at the beginning of May (05/07/2014) with expiration in July – next month. I sold 1 put contract with 28 strike and July expiration for 1 dollar (or $100 collected in premiums).
Today, this trade was worthless (it actually cost 0.05) and I could buy it back for $5 and close it and keep $95 in premiums. Thanks to TD Ameritrade 5 cent feature I paid zero commission.
Great trade. I could close it three weeks before expiration, keep almost entire profit and release my margin for next trading.
I have two more trades which may lose value next week. It will be GME 34 strike July contract and BEN 50 strike July contract. Then I might be able to open another trade. But that will depend on my available cash as I am raising cash to stay small and have enough reserves for trade adjustments.
Happy Trading and investing!