UPDATE: SPY, AMZN - One Day Trade Analysis

Discussion in 'Options' started by livevol_ophir, Nov 19, 2010.

  1. livevol_ophir

    livevol_ophir ET Sponsor

    SPY is trading $119.53, down 0.4% about 10 minutes after the open. The <a href="http://www.livevol.com/">LIVEVOL™ Pro Summary</a> is <a href="http://livevol.blogspot.com/2010/11/spy-amzn.html">in the article</a>.

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    Yesterday I posted this blog:<b><a href="http://livevol.blogspot.com/2010/11/spy_18.html">SPY - One Day Skew Trade</a></b>.

    Specifically we looked at:
    Buy the Nov 26 weekly 119 put for $0.59 and sell the Nov monthly 119 put @ $0.18. This spread pays $0.41. I like this trade for a few reasons: ...snip...

    I have included the Options Tab (<a href="http://livevol.blogspot.com/2010/11/spy-amzn.html">in the article</a>) as of the open (ish).

    As of this snapshot, the Nov 26 (W) 119 put can be sold @ $0.75 and the Nov monthly can be purchased for $0.17. That's a $0.58 credit on a $0.41 bet. That's a nice gain on a low risk bet even after commissions, that's ~ $0.13 or 31%.

    Similarly, we looked at a trade in AMZN for one day. You can read that post here:
    <b><a href="http://livevol.blogspot.com/2010/11/amzn.html">Amazon (AMZN) - Short-term Skew Peaks on Market Fear</a></b>. The Summary for AMZN as of ten minutes after the open is included <a href="http://livevol.blogspot.com/2010/11/spy-amzn.html">in the article</a>.

    <img src="http://www.livevolpro.com/help/images/blog/amzn_summary_11-19-2010.gif" />

    We analyzed:
    Buy the Nov 26 weekly 155 put for $0.58 and Sell the Nov Monthly 155 put @ $0.14. Pay $0.44 for the one week spread. Look to close tomorrow possibly.

    Let's look to the AMZN Options Tab (<a href="http://livevol.blogspot.com/2010/11/spy-amzn.html">in the article</a>):

    As of this snapshot, the Nov 26 (W) 155 put can be sold @ $0.43
    and the Nov monthly can be purchased for $.02. That's a $0.41 credit on a $0.44 bet. Adding commissions back, this was like a $0.07 loser... blah...

    This is trade analysis, not a recommendation.

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    Details, trades, prices, vols, skews, charts here:
    <a href="http://livevol.blogspot.com/2010/11/spy-amzn.html">http://livevol.blogspot.com/2010/11/spy-amzn.html</a>

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