Selling Calls To Take Advantage of SPY Drop to 82 By 18-Sep

Discussion in 'Journals' started by shortie, May 31, 2009.

Chances SPY Will Drop To 82 By Mid September

  1. Virtually Impossible

    6 vote(s)
    8.0%
  2. Unlikely

    8 vote(s)
    10.7%
  3. Possible

    13 vote(s)
    17.3%
  4. Likely

    25 vote(s)
    33.3%
  5. Sure Thing

    16 vote(s)
    21.3%
  6. Yet Another Fool Ready To Part With His $$

    7 vote(s)
    9.3%
  1. things are good on the option front. :)

    on Thursday i will need to deal with the possibility of being assigned because SPY options are assigned after Thursday close i think. also, there maybe a dividend with SPY. i will research the two issues above and will report back tonight.

    EOD update:
    [​IMG]
     
    #61     Jun 17, 2009
  2. does anybody know if the last day to trade SPY June options is on Thur? where can i look it up? i think SPY options should trade on Friday unlike SPX options (mentioned by dagnyt somewhere i think).

    but i remember being assigned SPY options before Friday open. but maybe it was because that particular option had a dividend in it and the owner chose to exercise to get the dividend.
     
    #62     Jun 17, 2009
  3. ammo

    ammo

    they trade til close on fri , 3:15 cst you could be assigned before that , in that case you will be long or short the (stock)
     
    #63     Jun 17, 2009
  4. no trades so far today. did not get a fill on short 90 July Calls. unrealized PL has improved a lot because the positon is getting closer to the sweet spot and to the expiration.

    june 18 midday update:
    [​IMG]
     
    #64     Jun 18, 2009
  5. can't find the next ex-dividend date for SPY. it happens every quarter and last year it was on 06/20 http://www.etfconnect.com/select/fundpages/etf_funds.asp?MFID=64563

    ITM calls don't reflect the dividend as far as i can tell: e.g. SPY=92.60, SPY June 92 call 0.80 (the previous dividend was 0.56). I would expect the calls to be ~0.50 more expensive if they had the dividend in them.


    so i guess i won't worry about it unless i hear from somebody with more knowledge.
     
    #65     Jun 18, 2009
  6. added -2x July 90 Calls. looking good going into expr.

    EOD update:
    [​IMG]
     
    #66     Jun 18, 2009
  7. screwed up a bit by not having a solid strategy to close out position on expiration day (and by not knowing whether i will get assigned or not).

    around 3pm i though SPY is likely to close below 92 in which case i will be Long 1200 shrs on Monday, so I sold 8x 90 July Calls to make -12x in total, then SPY jumped above 92 around EOD, so I went -10x July 91 Puts to cover the calls, then SPY dropped below 92 again. This time I got totally confused because I don't know whether i should rely on the official closing prices, 4:15pm price or some other price on SPY to figure out whether i will get assigned. so i added -6x 92 July Calls just in case since SPY was below 92 AH :confused:

    p.s. PL looks very nice :)

    EOD Update:
    [​IMG]
     
    #67     Jun 19, 2009
  8. Kick-ass brother. $3,800 was your max gain in the June contracts, awesome results.
     
    #68     Jun 19, 2009
  9. atticus, thank you for your kind words! and for your help!
     
    #69     Jun 19, 2009
  10. gkishot

    gkishot

    As long as spy continues moving sideways your positions will be profitable.
     
    #70     Jun 19, 2009