Am i thinking about this right?

Quote from TraderSU:

Also we are not talking about SPX option. It is a plain equity option on SPY. Mark was surely in hurry or had some prejudice :-)

My 2 cents to OP, please buy some decent book on options and read it before doing any more trade on options.

This was probably not the best bet if you are hoping for SPX to crash badly by NOV. You'll not make any extra money if SPY drops any further than 105. That is your ceiling... But hey! 5.40 is good money if you can get it all...
More...

thanks but my method is very accurate and I get out very quickly ...less than a $1 stop if wrong, so options dont scare me

I actually exited as we are sitting on support and the fact that I gave back most of my paper profits yesterday spooked me and i wanted to book the $1.50 or so profit.....shorting this marke is not fun.......it seem,s like every bounce is capable of running up $3.
 
Quote from spinn:

thanks but my method is very accurate and I get out very quickly ...less than a $1 stop if wrong, so options dont scare me
More...

I hesitate to respond after my previous misreading of your post.

Options don't scare you?

They should.

A $1 stop is meaningless in the face of a gap opening. Or did I miss the part where you exit the trade every afternoon?

Mark
 
How did you have a 1.50 or so profit on that trade the low of the day on that contract would not give you 1.50 profit even if you could have covered on the low?
 
Quote from xflat2186:

How did you have a 1.50 or so profit on that trade the low of the day on that contract would not give you 1.50 profit even if you could have covered on the low?
More...

I sold the call very near the high on Wewdnesday.....my profit was not all gained today....

And mark, no worries your advice is appreciated, but that is why I trade the SPY for now........I have never seen it gap up more than about $1....i find a $2 or $3 gap up in this environment unlikely and am to be honest, willing to risk it on the SPY.....no chance in hell I would risk it with google though.

And now we are breaking bebeath the low...oh well, thats trading
 
Quote from spinn:

I am short an SPY nov 105 call at about $5.40 and it is currently tradsing at $5.30......since SPY is currently trading at 109 doesnt that mean that this is all premium anfd as long as the SPY doesnt go above $110 before expiration it will expire worthless and my profit will be $5.40?

my method sees this endless up run ending soon and i feel shorting with a tight stop is as safe as going long......
More...

You told us yesterday where you shorted the call, thats why I quesioned you since there was not 1.50 in profit to be had in the market.
 
You must log in or register to reply here.
Back
Top