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

Chances SPY Will Drop To 82 By Mid September

  • Virtually Impossible

    Votes: 6 8.0%

  • Unlikely

    Votes: 8 10.7%

  • Possible

    Votes: 13 17.3%

  • Likely

    Votes: 25 33.3%

  • Sure Thing

    Votes: 16 21.3%

  • Yet Another Fool Ready To Part With His $$

    Votes: 7 9.3%
  • Total voters
    75
things are good on the option front. :)

on Thursday i will need to deal with the possibility of being assigned because SPY options are assigned after Thursday close i think. also, there maybe a dividend with SPY. i will research the two issues above and will report back tonight.

EOD update:
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does anybody know if the last day to trade SPY June options is on Thur? where can i look it up? i think SPY options should trade on Friday unlike SPX options (mentioned by dagnyt somewhere i think).

but i remember being assigned SPY options before Friday open. but maybe it was because that particular option had a dividend in it and the owner chose to exercise to get the dividend.
 
they trade til close on fri , 3:15 cst you could be assigned before that , in that case you will be long or short the (stock)
 
can't find the next ex-dividend date for SPY. it happens every quarter and last year it was on 06/20 http://www.etfconnect.com/select/fundpages/etf_funds.asp?MFID=64563

ITM calls don't reflect the dividend as far as i can tell: e.g. SPY=92.60, SPY June 92 call 0.80 (the previous dividend was 0.56). I would expect the calls to be ~0.50 more expensive if they had the dividend in them.


so i guess i won't worry about it unless i hear from somebody with more knowledge.
 
screwed up a bit by not having a solid strategy to close out position on expiration day (and by not knowing whether i will get assigned or not).

around 3pm i though SPY is likely to close below 92 in which case i will be Long 1200 shrs on Monday, so I sold 8x 90 July Calls to make -12x in total, then SPY jumped above 92 around EOD, so I went -10x July 91 Puts to cover the calls, then SPY dropped below 92 again. This time I got totally confused because I don't know whether i should rely on the official closing prices, 4:15pm price or some other price on SPY to figure out whether i will get assigned. so i added -6x 92 July Calls just in case since SPY was below 92 AH :confused:

p.s. PL looks very nice :)

EOD Update:
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Attachments

Quote from shortie:

screwed up a bit by not having a solid strategy to close out position on expiration day (and by not knowing whether i will get assigned or not).

around 3pm i though SPY is likely to close below 92 in which case i will be Long 1200 shrs on Monday, so I sold 8x 90 July Calls to make -12x in total, then SPY jumped above 92 around EOD, so I went -10x July 91 Puts to cover the calls, then SPY dropped below 92 again. This time I got totally confused because I don't know whether i should rely on the official closing prices, 4:15pm price or some other price on SPY to figure out whether i will get assigned. so i added -6x 92 July Calls just in case since SPY was below 92 AH :confused:

p.s. PL looks very nice :)

EOD Update:
attachment.php
More...

Kick-ass brother. $3,800 was your max gain in the June contracts, awesome results.
 
Quote from atticus:

Kick-ass brother. $3,800 was your max gain in the June contracts, awesome results.
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atticus, thank you for your kind words! and for your help!
 
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