Posted by donkeyface on 19th of Aug 2022 at 07:55 am
So, in some SPX (not SPY) puts (probably a bit over
leveraged, bought yesterday) went 30Sept4150,
I’m fairly confident this could be a gap and a gap test but not
fill and then go…. That massive monthly, weekly, daily
diagonal downtrend line acted as resistance perfectly,
and the daily has macd and stochastics and rsi all turned down
now with finally a bit of mini-divergence on the 3day stochastics.
Weekly is potentially still strong.
All this everyone knows if they listen nightly like me.
😂
Anyway, any recommendations on how to manage this
position?
Posted by DigiNomad on 19th of Aug 2022 at 10:45 am
"Anyway, any recommendations on how to manage this
position?"
I would use a put spread vs a put...especially if you're
worried you might be over leveraged.
Adding in the second leg of a spread after the initial move goes
in your favor is a great way to lock in profits and/or further
lower risk (depending on how far it went in your favor)
ONLY if you take out the pivot 4305 on ES - otherwise
monitoring a bearish triangle formation or a wave b zig zag.
Make sure you remain prudent in any event.
Remember this is OPEX week and the aim was to kill premium -
next week the VIX calls are trading at 10x the puts - implying
higher VIX by traders. Respect the trend but understanding
some backdrop is always wise for the near term. Continue to
monitor the channel. This does not imply anything longer
term - just short term. Level to level.
About $2 trillion of options are set to expire, obliging holders
to either roll over existing positions or start new ones. The
monthly event includes $975 billion of S&P 500-linked contracts
and $430 billion of derivatives across single stocks scheduled to
run out
SPX 60
Posted by steve on 18th of Aug 2022 at 03:32 pm
$SPX - Chart Link - same theme
Looks like one more push
Posted by arun on 18th of Aug 2022 at 04:28 pm
Looks like one more push up to squeeze some more shorts ?
Nope - the technicals were
Posted by steve on 19th of Aug 2022 at 07:22 am
Nope - the technicals were speaking and I sure hope you listened. BOOM
So, in some SPX (not
Posted by donkeyface on 19th of Aug 2022 at 07:55 am
So, in some SPX (not SPY) puts (probably a bit over leveraged, bought yesterday) went 30Sept4150,
I’m fairly confident this could be a gap and a gap test but not fill and then go…. That massive monthly, weekly, daily diagonal downtrend line acted as resistance perfectly,
and the daily has macd and stochastics and rsi all turned down now with finally a bit of mini-divergence on the 3day stochastics. Weekly is potentially still strong.
All this everyone knows if they listen nightly like me.
😂
Anyway, any recommendations on how to manage this position?
"Anyway, any recommendations on how
Posted by DigiNomad on 19th of Aug 2022 at 10:45 am
"Anyway, any recommendations on how to manage this position?"
I would use a put spread vs a put...especially if you're worried you might be over leveraged.
Adding in the second leg of a spread after the initial move goes in your favor is a great way to lock in profits and/or further lower risk (depending on how far it went in your favor)
Nice work.
Posted by arun on 19th of Aug 2022 at 07:29 am
Nice work.
ONLY if you take out
Posted by steve on 18th of Aug 2022 at 04:51 pm
ONLY if you take out the pivot 4305 on ES - otherwise monitoring a bearish triangle formation or a wave b zig zag. Make sure you remain prudent in any event.
Remember this is OPEX week and the aim was to kill premium - next week the VIX calls are trading at 10x the puts - implying higher VIX by traders. Respect the trend but understanding some backdrop is always wise for the near term. Continue to monitor the channel. This does not imply anything longer term - just short term. Level to level.
About $2 trillion of options are set to expire, obliging holders to either roll over existing positions or start new ones. The monthly event includes $975 billion of S&P 500-linked contracts and $430 billion of derivatives across single stocks scheduled to run out
I was expecting a sell
Posted by arun on 18th of Aug 2022 at 05:16 pm
I was expecting a sell off/pullback for next week. Let’s see.
Arun, looks like they gave
Posted by DK on 18th of Aug 2022 at 04:48 pm
Arun, looks like they gave it the old college try this afternoon, but it was faded a bit. Tomorrow should be interesting.