trade plan for SPY BPS
trade an index to avoid single stock suprises.
trade SPY, better understanding of it than the futures options with euro-type expiry.
look for a support level and place the BPS below it.
use BB as the main T/A study.
look for a dime, or a nickel credit on a dollar.
Spreads $1 or $2 wide, also consider $3 or up to $5. Still evaluating.
trade front month and enter wk after OPX wk, or any time after.
plan allows for additional entries of the same spread or a different one.
plan to exit OPX wk, usually by Tue.
hold to expiry if far enough OTM at the time.
loss exit, get out if the spread goes over 2X the original price (original credit).
no adjustments, simple plan going in, if things go bad, get out and plan next trade.
trade an index to avoid single stock suprises.
trade SPY, better understanding of it than the futures options with euro-type expiry.
look for a support level and place the BPS below it.
use BB as the main T/A study.
look for a dime, or a nickel credit on a dollar.
Spreads $1 or $2 wide, also consider $3 or up to $5. Still evaluating.
trade front month and enter wk after OPX wk, or any time after.
plan allows for additional entries of the same spread or a different one.
plan to exit OPX wk, usually by Tue.
hold to expiry if far enough OTM at the time.
loss exit, get out if the spread goes over 2X the original price (original credit).
no adjustments, simple plan going in, if things go bad, get out and plan next trade.