trade plan for SPY BPS trade an index to avoid single stock suprises. trade SPY, better understanding of it than the futures options with euro-type expiry. look for a support level and place the BPS below it. use BB as the main T/A study. look for a dime, or a nickel credit on a dollar. Spreads $1 or $2 wide, also consider $3 or up to $5. Still evaluating. trade front month and enter wk after OPX wk, or any time after. plan allows for additional entries of the same spread or a different one. plan to exit OPX wk, usually by Tue. hold to expiry if far enough OTM at the time. loss exit, get out if the spread goes over 2X the original price (original credit). no adjustments, simple plan going in, if things go bad, get out and plan next trade.
on mon 3/7 paper trade for a SPY wkly diagonal spread, SPY @ $200.63 long mar 18 203 call short mar 11 201 call credit$.15 on thu 3/10 I could have closed the short leg for a profit and let the long ride, but I did not and now it looks like we will have a loss on this trade
on thu 3/10 after market closed I did a limit order for a spread trade, fri 3/11 morning the market gapped up and I was filled, could have got a better fill if I would have traded live. don't think I will do this any more.
fri 3/11 closed out the 203/201 call spread from mon 3/7 for a $.15 Db, so trade netted to a wash. thu 3/10 I could have closed at a further $.26 Cr, or closed the short for an $.18 Db and today sold the long for$1.00, net an additional $.82
on fri 3/11 SPY put wkly diagonal trade (paper) based on plan I got from another trader SPY @ $202.76 bto mar 24 207 put sto mar 18 204 put $2.70 Db trade must be closed out on expiration of short leg
thu 3/24 SPY @ $203.11 bto apr/8 207 put sto apr/1 204 put $2.27 Db must be closed by short leg expiry apr 1
thu 3/31 trade is down about 22%, must close tomorrow, fri 4/1 made a mistake yesterday, trade was down 25%, not 75%