SPY and ES systems trade notification

    Posted by matt on 24th of Oct 2022 at 03:59 pm

    This notification confirms that the QE BTS is entering a 1st entry short on SPY at the close. For the trade for the website I'll show 10K SH ETF, and 1 SPY Put option with a strike price of 368 and expiration date of Dec 30th. FYI SPY options can be bought up to 15 min after the cash market close, whereas ETF's can be traded until 8 pm ES.

    Also there will be some ES system trades, which I will confirm later on.

    System Trade $368 price on that

    Posted by elementsix on 24th of Oct 2022 at 04:02 pm

    System Trade

    $368 price on that Put? I thought the usual recco was ~0.65 delta…

    I assumed typo... 386?

    Posted by skitexas67 on 24th of Oct 2022 at 04:05 pm

    I assumed typo... 386?

    yes typo - 368 would

    Posted by matt on 24th of Oct 2022 at 05:09 pm

    yes typo - 368 would be if it were a call option

    should be 396. 

    Is the retraction a typo

    Posted by steverobin on 25th of Oct 2022 at 03:38 am

    Is the retraction a typo as well?

    Any recommendation if you took

    Posted by jared95 on 24th of Oct 2022 at 06:55 pm

    Any recommendation if you took the option trade as posted?

    I cannot give trade advice,

    Posted by matt on 24th of Oct 2022 at 08:28 pm

    I cannot give trade advice, but for me personally I'd be looking to exit. The problem is the delta on 368 is 37. Look what is listed on the website for 1st entry should be in the 60s, only way I would consider options with 0.37 delta would be 3rd or 4th entries, not 1st, and the price being 12.7 is way off norm. 

    For options I typically buy options with an expiration about 2 months out. For first entry trades I target a delta of 0.6, for 2nd entries I target a delta of 0.5, and for rare 3rd entries I target an even lower delta below 0.5. 

    You will find that the first and 2nd entry SPY options tend to cost around $20 - 25, that 368 is 12.7, the price and delta should have been immediately obvious that something was off. Again my fault for the typo but again those are things to be aware of on the options - if you see delta price way off or price, something is wrong

    I may eventually stop the option calls - it's the most annoying part for me on all this - much easier for me to track the ETF's and pure futures

    My guess, as well.  I

    Posted by Ray on 24th of Oct 2022 at 04:06 pm

    My guess, as well.  I am going with 386.

    I thought the same thing.......

    Posted by Ray on 24th of Oct 2022 at 04:04 pm

    I thought the same thing.......

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