Selling Calls To Take Advantage of SPY Drop to 82 By 18-Sep

[shortie]

shorted 2x more 94C June @2.63
-4x total now

Ideally, I would like to limit myself to one new position per day (but no limit on hedge positions).I felt a bit greedy today, so I entered twice.

 

[shortie]

added another short 94C at 2.65

current position -5x average 2.58

approximately break even at the close today.

the market can go down now

 

[shortie]

no trades today. i wanted to lock in some gains by selling 2x June 91 puts but my target was not reached.

 

[shortie]

no trades today

 

[volente_00]

Quote from shortie:

added another short 94C at 2.65

current position -5x average 2.58

approximately break even at the close today.

the market can go down now

why 94's and not 95's ?

 

[shortie]

Quote from volente_00:

why 94's and not 95's ?

94's have more premium that i can milk. 93 would be my second choice, 95 third. i don't want to go too deep ITM because i think this crazy bull is not ready to drop a lot just yet.

 

[donnap]

Quote from atticus:

There are many methods to sell vol directionally, but selling naked calls shouldn't be at the top of the list.

What would be your list toppers?

 

[volente_00]

Quote from shortie:

94's have more premium that i can milk. 93 would be my second choice, 95 third. i don't want to go too deep ITM because i think this crazy bull is not ready to drop a lot just yet.

So are your intentions to cover before expiration or trying to sell what will be worthless ?

 

[atticus]

Quote from donnap:

What would be your list toppers?

Long fly or a short straddle for pure vol. Short calendars if vols are in contango.

 

[shortie]

Quote from volente_00:

So are your intentions to cover before expiration or trying to sell what will be worthless ?

if the calls expire worthless, it will be perfect. if they don't than i can rotate them into the next month. i will deal with it closer to expiration.

if spy drops enough i intend to start selling ITM puts to lock in gains and build strangles.


was trying to short one more 94 call after spy bounced up after the drop, but did not get a fill.