Anyone interested in SPY option trades, feel free to post your ideas here so that others may comment. Currently looking at the following - comments welcome. Sell Dec18'15 175 Put Buy Jan 15'16 176 Put Last bid/ask = 0.78 x 0.86 J_S
Maximum 1 month out. $5.00 between the strikes. Same expiry date. Minimum credit $1.00. Puts only. I haven't checked the quotes so I don't know how much OTM that would be.
Here is my reasoning, but just looking now, will monitor over this week. Can you mention specific month/strikes and we can look at p&l diagram? I ignore the % chance as underlying movement is what matters most - loss can be greater if we get huge volatility -went to -3.17 during last big drop! J_S is this something like you are thinking?
I do not trade naked, nearly got caught before and was lucky I had protection or I would have been wiped out! J_S
My looking shows that the last bid is 20 cent above model price for Dec 175..and Jan 176 ask is 7 cent above model price. Not sure how accurate, but at least I have something to go on! For ref..SPY currently @ 198.07 J_S
here is an actual trade I put on late last fri with SPY at $194 Nov wk3 205/210 call for $.70 it has been taking heat since I put it on, today, tue, it was at $1.07 comments welcome
Buy 1 Dec31 190 Put @ 4.00 Risk = $400 + commission Target gain = ??? Order in! J_S just filled..SPY @ 199.46