Regarding the market Steve and I have been discussing the large
4th wave corrective pattern for a while, either some sort of
triangle ABCDE where if wave E is in, the market should go higher,
but it should explode higher soon. Or wave D was never completed
and could be completed higher then prices go lower in E. Or a
complex ABCXABC pattern.
If one expected more corrective nature over time, one could look
at a bear spread i.e. sell SPX May 18th SPX 2535 and buy 2540, you
net $1 and max risk is 4. With spreads guys your risk is always
more than your net, you can't get around that. could always
consider this at higher prices as well.
One thing I may consider doing is an option service where I send
out my options trades. I sell a LOT of premium these days on
weekly SPX options as well as spreads on deeply oversold stocks or
overbought stocks. If I were to offer such a service, I would
give it to everyone for free for 1 - 2 months, then you can choose
to opt in or not, but I would want you to have it free for a while
to see if it's a fit for you or not. I would send out the
actual trades so you would just follow the trades like the SPY
system, whoever there would be a lot more trades obviously maybe a
5 a week or something. I don't have anymore details at this time,
just something I'm exploring
Posted by jerkelly on 30th of Apr 2018 at 06:45 pm
Matt can you elaborate on how you choose your strike prices?
Besides obvious support/resistance zones, do you look at
anything like certain strikes having more volume or anything?
Also in choosing the expiration dates is there a certain time
frame you always use (like say 6-8 weeks out) or are
there other factors (like monthly vs weekly options) that you
use to determine the best expiration dates? And count me in on the
option service. I would love to try that. I have
traded spreads with another service for awhile but they only
use bull put spreads monthly and they never really explain
the "why" behind the trade. Would love to learn more on
choosing different type spreads, etc. Thanks
jerkelly - there's a myriad of things I look for.
Generally I'm looking for extremes, places where I think
there are low odds for the SPX to move in a certain time etc, and
of course I have to find options that are well priced to play that.
If I do bring such a service there'll also be a series of
educational guides and examples I'l give every one
If one had done that spread below netting $1 per contract, it
would already be down to 60 cents or a 40% gain. even though
they are monthly options you don't have to hold until May 18th, can
close anytime
bear call spread
Posted by matt on 30th of Apr 2018 at 11:09 am
Regarding the market Steve and I have been discussing the large 4th wave corrective pattern for a while, either some sort of triangle ABCDE where if wave E is in, the market should go higher, but it should explode higher soon. Or wave D was never completed and could be completed higher then prices go lower in E. Or a complex ABCXABC pattern.
If one expected more corrective nature over time, one could look at a bear spread i.e. sell SPX May 18th SPX 2535 and buy 2540, you net $1 and max risk is 4. With spreads guys your risk is always more than your net, you can't get around that. could always consider this at higher prices as well.
One thing I may consider doing is an option service where I send out my options trades. I sell a LOT of premium these days on weekly SPX options as well as spreads on deeply oversold stocks or overbought stocks. If I were to offer such a service, I would give it to everyone for free for 1 - 2 months, then you can choose to opt in or not, but I would want you to have it free for a while to see if it's a fit for you or not. I would send out the actual trades so you would just follow the trades like the SPY system, whoever there would be a lot more trades obviously maybe a 5 a week or something. I don't have anymore details at this time, just something I'm exploring
Matt - did you mean
Posted by toothdoc on 30th of Apr 2018 at 01:11 pm
Matt - did you mean 2735/2740 BC spread?
can now close that spread
Posted by matt on 30th of Apr 2018 at 02:47 pm
can now close that spread at 20/30 cents, was a buck, so even though monthly they sometimes you can close them in a day
Matt can you elaborate on
Posted by jerkelly on 30th of Apr 2018 at 06:45 pm
Matt can you elaborate on how you choose your strike prices? Besides obvious support/resistance zones, do you look at anything like certain strikes having more volume or anything? Also in choosing the expiration dates is there a certain time frame you always use (like say 6-8 weeks out) or are there other factors (like monthly vs weekly options) that you use to determine the best expiration dates? And count me in on the option service. I would love to try that. I have traded spreads with another service for awhile but they only use bull put spreads monthly and they never really explain the "why" behind the trade. Would love to learn more on choosing different type spreads, etc. Thanks
jerkelly - there's a myriad
Posted by matt on 30th of Apr 2018 at 10:21 pm
jerkelly - there's a myriad of things I look for. Generally I'm looking for extremes, places where I think there are low odds for the SPX to move in a certain time etc, and of course I have to find options that are well priced to play that. If I do bring such a service there'll also be a series of educational guides and examples I'l give every one
yes
Posted by matt on 30th of Apr 2018 at 01:12 pm
yes
If one had done that
Posted by matt on 30th of Apr 2018 at 12:17 pm
If one had done that spread below netting $1 per contract, it would already be down to 60 cents or a 40% gain. even though they are monthly options you don't have to hold until May 18th, can close anytime
Thanks, Matt. I want to
Posted by zhuma777 on 30th of Apr 2018 at 11:21 am
Thanks, Matt. I want to subscribe the option service,