Spy put vertical

G

Georgi90

Hi all
I am thinking of putting on a weekly vertical spread, based on a research that shows september as the worst month for stock investors. Its the 160/155 debit spread. The price of the sep27'13 160 put implies that we need roughly 3.35 percent down move in the underlying to breakeven. Can somebody explain how could be avoided buying elevated IV strike, or if its already elevated. I guess I can find that by myself, but I am a newbie so I won't be sure if I do it right.
 
Well, its not actually like we go down every year on that month, but I want to bet on it .That is the last five September percentage changes
-9.1% 2008
3.6% 2009
8.8% 2010
-7.2% 2011
2.4% 2012
 
Quote from cdcaveman:

Why cap the gain... Just buy a put
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What if I sell it on a regular basis.I mean the 155 leg. The 6 / 13 / 20 / 27. Is it good idea. Its like a hedge if the stock don't move that much, plus I feel it more flexible that way
 
Quote from Georgi90:

What if I sell it on a regular basis.I mean the 155 leg. The 6 / 13 / 20 / 27. Is it good idea. Its like a hedge if the stock don't move that much, plus I feel it more flexible that way
More...

Right now you're saying sp is lower at EOM, so I'd just buy the Sept 27 vertical. Rolling the short is riskier if it goes against you, and imo won't help much if you're right. Unless you have a view of how it'll drop I'd just set it and forget it. m2c.
 
Quote from pikachu9:

"Shorting Stocks On These POMO Days May Be Hazardous To Your Health"
http://www.zerohedge.com/news/2013-...-these-pomo-days-may-be-hazardous-your-health
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explain this sh!t :)
tommorow have to be the second biggest treasury purchases. This will bring the yields down, and therefore the s&p will rise ? on the operation date or the settlement date. I bet you have no idea, then why you post it. Does it matter the price at which they buy this stuff, because you want be able to see it until september 30.
 
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