Posted by retirefire on 14th of May 2021 at 09:43 am
Just an observation …. The SPY option only a point higher or so
from where I sold yesterday on this decent move on SPX. So again
NOT COMPLAINING, but I need to learn how to evaluate pricing on
options. Maybe I'm over reading too ??
Posted by mitchell on 14th of May 2021 at 10:01 am
Unless you have a good algo doing your trading Options take a
while of consistently analyzing to time entries well. Its safe to
assume the other side of an options trade is an algo.
I suck at options guys, well what I mean is I know the basics,
I'm not an options expert. Many of you here are much more
experienced option trades than I am in doing call and put spreads
etc. I just do the basics.
I think those of you who are more expert at options can explore
other option strategies that you think will work better for these
SPY trades - I'm always open to seeing things like that - don't be
shy about posting those once in a while.
I know one guy here who trades the KISS daily and 2 day, but
instead of exiting what he does is he'll do a spread - so like if
he thinks the market is going to pullback but doesn't want to exit
his SPX, he'll buy a call and sell a call option, then with the
spread profit generated from buying and selling two different call
option strike prices he'll use that capital to buy options
for free.
Why would he not just exit the market? well it's complicated but
he's an RIA and quite a few of his clients accounts are not IRA tax
free, and so each time he sells, generates taxable event and some
of his clients don't like that, even if the DVT's are correct - go
figure. So he'll try to keep the positions most of the time but use
the option strategies to protect them
Posted by moshark99 on 14th of May 2021 at 12:21 pm
Hey Matt, Im just a dummy but what has worked for me is rolling
the SPY trades which have been spot on. Using the current trade I
bought the SPY 393 after hours on the 12th when the note came out
10 contracts=$22600ish iI mental stop of $2 for about a 10 % loss
it later traded up the next day and when I had over a
$1500 gain I rolled to the just in the money 405 Calls and by the
time I did the trade had a 2K gain so keeping my stop margin I was
at break even if it failed. Today SPY is over 415 so I rolled up
again, took risk off the table and lowered my cost
basis.............The numbers work as follows
BUY SPY 393C...22600 (APPRX)
...........................................................................................................................................................BUY
SPY 415C....10300...........now with the extra credit my cost basis
is about 6900 for a Call selling for
10300, I have a 1500 stop loss locking in a 1500
profit at the moment
Posted by mitchell on 14th of May 2021 at 10:53 am
Basic call / put options works well for most; complexity =
headache. Really comes down to timing. One needs to anticipate
turning pts to get in/out slightly early to the algos. For example,
had SPX ATM calls that lost 50% in value this wk and wiped out my
profit w/in 2 days...that's fast. Was not paying attention to
market position like I should have. Options move quick so timing is
everything; best to keep a relatively short term mindset w/ them
for this reason.
I think for the option trades, even though for 1st entries I
show 1 contract on the website, remember I only do that for
simplicity because I double that for the 2nd entry, and 3 options
for the 3rd entry. If one has the capital to do so, best to do say
2 options, or 4 options, 6 etc basically sticking to that 1,2, 3
format for 2nd and 3rd entries.
On the 1st entry so that if you are one that likes to scale out
to reduce risk or it helps your psychology to do so, then you can.
If you have only 1 option you can't scale. That's how I role
personally, it's not really better in the long run, I think profits
are higher one just stays in for the final exit, but for me I like
peeling something off so personally I do more than 1 option. Again
whatever fits your risk profile and account size
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Just an observation …. The
Posted by retirefire on 14th of May 2021 at 09:43 am
Just an observation …. The SPY option only a point higher or so from where I sold yesterday on this decent move on SPX. So again NOT COMPLAINING, but I need to learn how to evaluate pricing on options. Maybe I'm over reading too ??
Unless you have a good
Posted by mitchell on 14th of May 2021 at 10:01 am
Unless you have a good algo doing your trading Options take a while of consistently analyzing to time entries well. Its safe to assume the other side of an options trade is an algo.
I suck at options guys,
Posted by matt on 14th of May 2021 at 10:09 am
I suck at options guys, well what I mean is I know the basics, I'm not an options expert. Many of you here are much more experienced option trades than I am in doing call and put spreads etc. I just do the basics.
I think those of you who are more expert at options can explore other option strategies that you think will work better for these SPY trades - I'm always open to seeing things like that - don't be shy about posting those once in a while.
I know one guy here who trades the KISS daily and 2 day, but instead of exiting what he does is he'll do a spread - so like if he thinks the market is going to pullback but doesn't want to exit his SPX, he'll buy a call and sell a call option, then with the spread profit generated from buying and selling two different call option strike prices he'll use that capital to buy options for free.
Why would he not just exit the market? well it's complicated but he's an RIA and quite a few of his clients accounts are not IRA tax free, and so each time he sells, generates taxable event and some of his clients don't like that, even if the DVT's are correct - go figure. So he'll try to keep the positions most of the time but use the option strategies to protect them
anyway guys experiment
Hey Matt, Im just a
Posted by moshark99 on 14th of May 2021 at 12:21 pm
Hey Matt, Im just a dummy but what has worked for me is rolling the SPY trades which have been spot on. Using the current trade I bought the SPY 393 after hours on the 12th when the note came out 10 contracts=$22600ish iI mental stop of $2 for about a 10 % loss it later traded up the next day and when I had over a $1500 gain I rolled to the just in the money 405 Calls and by the time I did the trade had a 2K gain so keeping my stop margin I was at break even if it failed. Today SPY is over 415 so I rolled up again, took risk off the table and lowered my cost basis.............The numbers work as follows BUY SPY 393C...22600 (APPRX)
.........................................................................................................................................................SELL SPY 393C ...24600 +2k
..........................................................................................................................................................BUY SPY 405C...15700 (using 2k stop now break even)
..........................................................................................................................................................SELL SPY 405C...17100
...........................................................................................................................................................BUY SPY 415C....10300...........now with the extra credit my cost basis is about 6900 for a Call selling for
10300, I have a 1500 stop loss locking in a 1500 profit at the moment
Thanks for all your help....John
awesome moshark99 thx for sharing
Posted by matt on 14th of May 2021 at 01:13 pm
awesome moshark99 thx for sharing with everyone, looks interesting
Basic call / put options
Posted by mitchell on 14th of May 2021 at 10:53 am
Basic call / put options works well for most; complexity = headache. Really comes down to timing. One needs to anticipate turning pts to get in/out slightly early to the algos. For example, had SPX ATM calls that lost 50% in value this wk and wiped out my profit w/in 2 days...that's fast. Was not paying attention to market position like I should have. Options move quick so timing is everything; best to keep a relatively short term mindset w/ them for this reason.
I think for the option
Posted by matt on 14th of May 2021 at 09:49 am
I think for the option trades, even though for 1st entries I show 1 contract on the website, remember I only do that for simplicity because I double that for the 2nd entry, and 3 options for the 3rd entry. If one has the capital to do so, best to do say 2 options, or 4 options, 6 etc basically sticking to that 1,2, 3 format for 2nd and 3rd entries.
On the 1st entry so that if you are one that likes to scale out to reduce risk or it helps your psychology to do so, then you can. If you have only 1 option you can't scale. That's how I role personally, it's not really better in the long run, I think profits are higher one just stays in for the final exit, but for me I like peeling something off so personally I do more than 1 option. Again whatever fits your risk profile and account size