SPY Option Trade Ideas

J

J_Smith

Anyone interested in SPY option trades, feel free to post your ideas here so that others may comment.

Currently looking at the following - comments welcome.

Sell Dec18'15 175 Put
Buy Jan 15'16 176 Put

Last bid/ask = 0.78 x 0.86

J_S
 
  • Maximum 1 month out.
  • $5.00 between the strikes.
  • Same expiry date.
  • Minimum credit $1.00.
  • Puts only.

I haven't checked the quotes so I don't know how much OTM that would be.



:)
 
J_Smith said:
Anyone interested in SPY option trades, feel free to post your ideas here so that others may comment.

Currently looking at the following - comments welcome.

Sell Dec18'15 175 Put
Buy Jan 15'16 176 Put

Last bid/ask = 0.78 x 0.86

J_S
More...

If the spread is that wide there's massive edge in just selling the jan16!
 
OTM-Options said:
  • Maximum 1 month out.
  • $5.00 between the strikes.
  • Same expiry date.
  • Minimum credit $1.00.
  • Puts only.
I haven't checked the quotes so I don't know how much OTM that would be.



:)
More...
Here is my reasoning, but just looking now, will monitor over this week.

Can you mention specific month/strikes and we can look at p&l diagram?

I ignore the % chance as underlying movement is what matters most - loss can be greater if we get huge volatility -went to -3.17 during last big drop!

J_S

Screen Shot 10-05-15 at 07.59 PM.PNG


is this something like you are thinking?

Screen Shot 10-05-15 at 08.02 PM.PNG
 
My looking shows that the last bid is 20 cent above model price for Dec 175..and Jan 176 ask is 7 cent above model price.

Not sure how accurate, but at least I have something to go on!

For ref..SPY currently @ 198.07

J_S
 
J_Smith said:
My looking shows that the last bid is 20 cent above model price for Dec 175..and Jan 176 ask is 7 cent above model price.

Not sure how accurate, but at least I have something to go on!

For ref..SPY currently @ 198.07

J_S
More...

it's actually not as rich as I thought when looking at it properly.
 
here is an actual trade I put on late last fri with SPY at $194
Nov wk3 205/210 call for $.70
it has been taking heat since I put it on, today, tue, it was at $1.07
comments welcome
 
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