Tom and I like to look at options from time to time, Tom pointed
out to me that the SPY puts for this Nov are selling for 22 cents
for the 97 strike price on SPY!
While nothing is impossible, it seems extremely unlikely to me
that the SPY would fall to $97 by options expiration, the 3rd week
of this month. The S&P 500 would have to fall below 1000
by then, that just seems unlikely. So to me, while it's not a
lot of money, selling some puts on the 97 strike price for SPY for
this Nov almost seems like free money, or at least low risk enough
for me to sell some of them naked. If the market has another
move lower, I'll just sell more.
The 100 is selling for 0.28
The 105 strike is selling for 0.45 cents, which is still about 3
points below the Oct lows
I wrote the ES NOV 4 1135 Puts earlier today at 2.30. Same
concept for those who may not know much about options; just on a
much shorter time frame. If ES settles above 1135 this Friday, then
I collect 2.30 ES points.
Do you ever write ES options? The ES 970 NOV 18 Puts are
currently trading at 2.00. That's another way to play it too. Good
way to keep a steady cash flow going. When the VIX pops 40% in two
days, why not write some deep otm options?
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SPY puts
Posted by matt on 1st of Nov 2011 at 02:20 pm
Tom and I like to look at options from time to time, Tom pointed out to me that the SPY puts for this Nov are selling for 22 cents for the 97 strike price on SPY!
While nothing is impossible, it seems extremely unlikely to me that the SPY would fall to $97 by options expiration, the 3rd week of this month. The S&P 500 would have to fall below 1000 by then, that just seems unlikely. So to me, while it's not a lot of money, selling some puts on the 97 strike price for SPY for this Nov almost seems like free money, or at least low risk enough for me to sell some of them naked. If the market has another move lower, I'll just sell more.
The 100 is selling for 0.28
The 105 strike is selling for 0.45 cents, which is still about 3 points below the Oct lows
I wrote the ES NOV
Posted by cw12 on 1st of Nov 2011 at 02:35 pm
I wrote the ES NOV 4 1135 Puts earlier today at 2.30. Same concept for those who may not know much about options; just on a much shorter time frame. If ES settles above 1135 this Friday, then I collect 2.30 ES points.
Matt/Tom, Do you ever write ES
Posted by cw12 on 1st of Nov 2011 at 02:31 pm
Matt/Tom,
Do you ever write ES options? The ES 970 NOV 18 Puts are currently trading at 2.00. That's another way to play it too. Good way to keep a steady cash flow going. When the VIX pops 40% in two days, why not write some deep otm options?