I am looking to sell OCT 1050 or 1075 puts as SPX approaches 1200/1210 zone. Difficult to get a good fill on these OTM puts but I will move aggressively when SPX drops approaches 1210. I have been exploring the possibility of buying XLF OCT 19 or 20 calls - looking for XLF to drop to 19.50 or lower
Sold 20 SPX 1000 puts @ 3.85 Did not get a fill on another 20 puts; will try tomorrow. The spread will be completed later - will buy SPX 975 or 1025 puts on rally to SPX 1225 or higher. Sell in down days; buy in up days.
Hi Jahajee, which is the size of your account and the margin requirement for this position? Have you planned what to do if the markets drops again? Good luck.
Paper trading? :eek: Then your risk here is win this paper trade and thinking in easy money from the markets.
This is the real thing. My account is just over 1.6 million and I day trade mainly S&P and e-mini futures. I sell SPX or SPY far OTM puts or calls and am prepared to hedge with S&P futures overnight, especailly if SPX is 75 or less from strike. At 15:44 after the S&P futures hit a pivot high and headed down I sold ONE SPU8 at 1209.4 which is held overnight with a 5-point traillow or 20-point profit target. Thought of selling more but today I bought 10 USO 78 calls @ 4.05 and and 8 XLF 19 calls @ 1.85. Will try to sell another 10 or 20 SPX 1000 puts tomorrow and buy more USO and XLF calls. When SPX rallies to 1240 or higher I will buy SPX 975 or 1025 puts - depending on whether I am bearish or bullish, or I may buy the SPX 1000 puts and take the profit. At SPX 1275 or higher I will liquidate SPX puts and sell SPX calls - 1375 or higher strike. Don't try this if you an average (or worse) S&P futures trader or if you are undercapitalized.
SEP 16th 2008: Closed overnight SPU8 short position - sold @ 1209 and bot @ 1188 - Profit 21 points SOLD 20 OCT SPX 1000 PUTS @ 4.45 Total position: SOLD 40 OCT SPX @ 4.15 Closing price = 2.20 BOT 10 OCT XLF 18 calls @ 2.40; closing price 2.83 Previously : bot 8 OCT XLF 19 calls @ 1.85; closing price 2.25 BOT 10 OCT USO 75 calls @ 3.60; closing price 4.40 Previously: BOT 10 OCT USO 78 calls @ 4.05; closing price 3.02 Sold Short 1 SPU8 @ 1214