Posted by mirhamedali on 12th of Sep 2022 at 11:52 pm
@tmbrook1, here is the example you requested
This is on QQQ. First image is a normal Bear Put Spread,
2nd one adds a 385 Call which is just $0.21, so its dirt
cheap insurance in case the market moves against me. Even if
the market goes up 10% my loss is almost zero.
But as you can see the insurance starts losing some juice after
about a month, but its best practice to exit spreads early (at
around 50% of max profit).
As an advanced tactic, if the market moves against you then
you can sell that OTM call if you feel the market will come back in
your favor thus banking some profit in the interim.
Posted by bpozdoll1717 on 13th of Sep 2022 at 08:11 am
Plus seems like the big boys have advance knowledge of a good
CPI. No way they run it up to a key announcement without some info
leaked. Expect a lower CPI.
@tmbrook1, here is the example
I understand the reasons why so many are bearish right ...
Posted by mirhamedali on 12th of Sep 2022 at 11:52 pm
@tmbrook1, here is the example you requested
This is on QQQ. First image is a normal Bear Put Spread, 2nd one adds a 385 Call which is just $0.21, so its dirt cheap insurance in case the market moves against me. Even if the market goes up 10% my loss is almost zero.
But as you can see the insurance starts losing some juice after about a month, but its best practice to exit spreads early (at around 50% of max profit).
As an advanced tactic, if the market moves against you then you can sell that OTM call if you feel the market will come back in your favor thus banking some profit in the interim.
Plus seems like the big
Posted by bpozdoll1717 on 13th of Sep 2022 at 08:11 am
Plus seems like the big boys have advance knowledge of a good CPI. No way they run it up to a key announcement without some info leaked. Expect a lower CPI.
The SPX formed a clear
Posted by steve on 13th of Sep 2022 at 08:18 am
The SPX formed a clear triangle yesterday (posted here) which suggested a push higher