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
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Any recommendation if you took
SPY and ES systems trade notification
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