SPX through 1,000? 1030 Calls at .90x1.40

K

kroponer

Hi,

this is just a potential trade I thought of while watching the options chain on SPX so please comment with your idea/feedback!!


1) SPX has to get through resistance at 1,000.

2) June 18 1030 Calls (SPQFF) are trading at 0.60x1.40 bid/ask right now.

3) 16 days to June 18 expiration.


I think a vertical bear call would be a good bet. I can't do it (mainly because I have to study for a finance test tomorrow and if I put on a trade I will want to watch it the rest of the day and watch Capital Connection to watch where Asia opens and forget about my finance class) but if you have some experience with options, what do you think of this trade?

I suppose a 1030/1050 Bear Call.

I understand the risk reward structure of verticals, but, based on technicals, I think shooting through 1000 in 18 days could be difficult.

If you held all the way from the March rally to now, wouldn't you see 1,000 as a point to take some off the table? That's why I think there would be resistance.

Please comment :cool:
 
Quote from kroponer:



16 days to June 18 expiration..

Please comment
More...

Expiration is Jun 20.

Last day of trading is Jun 18

Price of index is determined by opening prices of each of the 500 stocks in the index - on June 19.


These are not trivial matters.
Please don't trade this stuff unless you understand these distinctions.

Mark
 
Quote from dagnyt:

Expiration is Jun 20.

Last day of trading is Jun 18

Price of index is determined by opening prices of each of the 500 stocks in the index - on June 19.


These are not trivial matters.
Please don't trade this stuff unless you understand these distinctions.

Mark
More...

What do you mean "please don't trade this stuff unless you understand these distinctions"? WE NEED LIQUIDITY FOR EASY MONEY TRADES :D.
 
Quote from NY0BScalper:

What do you mean "please don't trade this stuff unless you understand these distinctions"? WE NEED LIQUIDITY FOR EASY MONEY TRADES :D.
More...

I take it you're joking since you dont get to trade vs. retail paper
 
Quote from kroponer:

Hi,

this is just a potential trade I thought of while watching the options chain on SPX so please comment with your idea/feedback!!


1) SPX has to get through resistance at 1,000.

2) June 18 1030 Calls (SPQFF) are trading at 0.60x1.40 bid/ask right now.

3) 16 days to June 18 expiration.


I think a vertical bear call would be a good bet. I can't do it (mainly because I have to study for a finance test tomorrow and if I put on a trade I will want to watch it the rest of the day and watch Capital Connection to watch where Asia opens and forget about my finance class) but if you have some experience with options, what do you think of this trade?

I suppose a 1030/1050 Bear Call.


I understand the risk reward structure of verticals, but, based on technicals, I think shooting through 1000 in 18 days could be difficult.

If you held all the way from the March rally to now, wouldn't you see 1,000 as a point to take some off the table? That's why I think there would be resistance.

Please comment :cool:
More...

Make it worth your time and sell the 850/830 put bull call spread simultaneously with this. That way, you increase your award and keep your max risk the same (at the expense of slightly higher probability you are wrong).

I don't trade SPX, but i'd imagine SPY options are much more liquid.

I forget the name for selling two out of the money verticals simultaneously.. iron condor or something like that. I think iron butterfly is short the atm straddle and long otm strangle.

been a while.
 
I'm not going to trade it, I wanted to know what people thought of SPX going through 1,000 and thus, a vertical higher than that price. Nevermind, no use.
 
I don't think there are many on this board or even in the markets thinking we will be trading over 1000 this summer. However no one knows, it will do what it wants and when you least expect it. SPX has gained (almost) 300 pts in just about 3 months so there is obviously a possibility of it gaining another 80 pts in 3 weeks. You seem to understand that you are risking $19 to make $1 with a good probability of keeping your buck. Its just so damn painful when you do lose the $19:(
 
Quote from kroponer:
I'm not going to trade it, I wanted to know what people thought of SPX going through 1,000 and thus, a vertical higher than that price. Nevermind, no use.
More...
1) You have to act on your own opinion, not seek confirmation/validation from others.
2) With the SPX, index multiples of 100 seem to be "resistance" levels. With the Dow Jones, index multiples of 1,000 appear to be resistance levels.
3) If you expect the 1000 level to be resistance on the first rally up, you should be willing to short-sell that strike price now, not something farther out-of-the-money that diminishes your potential return. :cool:
 
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