Bought SPY 129 @0.70 Now 1.50. Put a stop @1.40. 100% guaranted I am looking for some debit spread. We should see a bounce by beginning of next week.
i agree. credit spreads on the NDX arent much safer than credit spreads on individual issues. If you are gonna go that way then you better be prepared for days like these. In my opinion the premium that you get with the NDX credit spreads isnt worth risking the swings compared to credit spreads on a more muted index.
Instead of a trailing stop, you could close half and turn the other half into a bear put spread. June is a long way from now and things dont look very rosy at this point. just an idea of how to manage the trade.
I was going to do that and then it was sold @1.42. Still 100% I am ok with that. I didn't want to keep a regular PUT over the weekend. I did open it as a potential hedge for my June Bull PUT but I still don't see the BULL PUT yet. Waiting for TA confirmation.
The ITM put spread is a little worse so one owuld have to compare which is better if closing today was the choice. 1300/1295 levels of support might hold so I would worry about a pullback slightly into next week which would erase some nice gains on that huge position that was put on. Another option is to add the 1300/1305 put credit spread for a FLY with at least $0.30 credit perhaps. On 100 spreads that is $3k minimum with potential for much higher profits...
Sure, but the box IS a synthetic offset. The fly is a good idea as I wouldn't want to carry the upside risk.
I think this selloff is getting ahead of itself. So far the 1295 level is holding. If we manage to close >1300, we might get a nice bounce going into the PPI/CPI numbers. What happens after that would depend on who Maria Bartiromo talked to over this weekend LOL