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SPX Blaster
I would still suggest closing the long contract when market opens up. I believe the high for the week has been made, and it's down for the rest of the week (with some minor retracements).
What is the best approach for this trade ?
- Thread starter traderwald
- Start date
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SPX Blaster
Cycle low due about Aug. 31
Actually Mr @tommcginnis
I did take your suggestion (most of it
) and did buy a call ! But it was not at 2930 as suggested, but at 2950. But the confusing thing is that the call went to 5 bux (gain of 4.4 points) even though ES was ~ 2872 but now with ES at 2882 the call is only 1.70. not sure how that is for this Opt! Delta has increased. Is it because of Theta that this has decreased to $1.70 or so ?
I did take your suggestion (most of it
) and did buy a call ! But it was not at 2930 as suggested, but at 2950. But the confusing thing is that the call went to 5 bux (gain of 4.4 points) even though ES was ~ 2872 but now with ES at 2882 the call is only 1.70. not sure how that is for this Opt! Delta has increased. Is it because of Theta that this has decreased to $1.70 or so ?
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1) A 2950 call will not provide coverage for your teensy potential loss between 2935 and 2936.3
2) I surely do hope you did not pay much over the current market of ~$2.00 for that 2950 call. You should either exit that, or consider selling a nearby call and spread it.
3) Your choice to not do homework is, y'know, your choice. But don't expect too many knowledgeable folk to assist you in going broke.
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SPX Blaster
I really hope you closed the long trade. If you are holding on, hoping the market will come back, that is a sign of a self destructive trader. There is no one here who can help you.
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SPX Blaster
Hope your doing well. I closed my SP short for a loss and went long crude. Crude looked like a better idea.
You are proposing he close one side of a delta-neutral (riskless) trade? Really? You've just broadcast your total ignorance AND arrogance. WwwwwwWOW.
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SPX Blaster
I am inexperienced in options. But if he continues to hold the long contract, the losses will increase (I'm talking about the contract only, not the put option). If he closes it out, it will not lose money anymore. His put contract will increase in value.
Apparently, you believe the market will rally. I'm in the opposite camp big time.
Apparently, you believe the market will rally. I'm in the opposite camp big time.
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SPX Blaster
I'll post my current short trade in SPX at the end of week, and you can determine if I'm stupid.
Wrong again. What is apparent is that the OP posed a query on how to handle a long future contract and a long put contract that sits $1.25 below.
This means very small capital risk, and nearly zero movement in the position no matter what the market might do.
• I observed that 2930-ish calls were cheap, and buying one ($2-ish?) -- or better, a spread (60¢?) -- would certainly be a fun way to cover the (remote) threat of a $1.25 loss.
• You, on the other hand, proposed nuking his insurance, putting him on the hook should the market tumble further, as you yourself expect.
"Apparently," I don't care which way the market goes. I just want to cover my positions with reasoned exposure.
When you can learn to trade such that you too 'don't care', then maybe you can avoid taking losing positions off at 7am, only to change your mind 5 hours later.
