It feels like you're in the midst of a correction, but then it also feels like it was a minor correction and that it might be over- this whole China news about their economy slumping is just annoying.
Babu, Sometimes you have to just do nothing and let the market sort itself out (particularly before a Fed meeting). Jeff
I like the long gamma trade. SPX carrying 16 vol. Implied there. Shouldn't get too hurt and the option to hit it big.
Risky trade optionatrix This is a serious case against WMT. If it gaps down tomorrow your options are gonna be hurt...
That'll probably work out in the end but seems a little too risky for my taste given the shifty market right now and who knows what else will come out of this scandal-wise. I'd probably wait a week to let the dust settle a bit before jumping in, course by then you may be sitting on some cash. I just bought 3 NFLX Apr weekly/May 100 calendars for $1.25. Also picked up an AAPL Apr weekly/May 600 calendar for $7.5. We'll see what happens after their earnings this week.
@ babutime & scottandmo, yes risky, and I'm thinking to get out of it & replacing it with the MAY 55P even though there's not much premium there, but I'd be happy to own @ 55 while waiting in the meantime.
I didn't adjust the WMT position because the 55P premium is too small. I persuaded myself that getting assigned @ 57.5 is okay. I may roll down and out later, but sticking to my original trade for now.