Which option strategy to use with the following setup ?

Discussion in 'Options' started by Autodidact, Mar 17, 2015.




  1. You just posted a 3x trade.

    • At the time of your post (12:16 PM EST) the SPY was trading at $207.17.
    • SPY closed at $210.42 today.
    • 207.00 SPY March 20 Calls closed at $3.61.
    • 207.50 SPY March 20 Calls closed at $3.10.



    :)
     
    Last edited: Mar 18, 2015
    #11     Mar 18, 2015
  2. taowave

    taowave

    Not sure I agree on this one.
    why not trade the 90/115 1x2 assuming
    the trade is sufficiently delta long vs a bear ratio spread? Unless you put the bear ratio on for a big credit,how much will you make if you are dead right?

    Personally, I see no edge in trading options directionally as opposed the underlying Unless trading the weeklys,punting or when vol is super cheap


     
    #12     Mar 18, 2015
  3. xandman

    xandman

    bear put ratio is directionally short, which I recommended for going short because of the likely rise in iv. I didn't recommend the bear call ratio for a long position., but is doable imho. Sorry for the confusion.
     
    #13     Mar 18, 2015
  4. Autodidact

    Autodidact

    Typically when i go long its because i expect a reaction to the upside, neutrality is not something I can predict.

    Based on the above posting, I should keep doing what Ive been doing, buying calls or buying puts at the strike of the designated target.

    I wish I could simply buy the shares as sometimes the spread on low volume stocks is extremely unfavorable, but when I do that I lose a great deal in the risk management department.

    Thank you all very much for sharing your views.
     
    #14     Mar 18, 2015
  5. Teycir

    Teycir

    Weekly debit spreads on ES when RSI14>70 or <30 . 1.5 Month to expiration OTMs on NG when there is divergence between MFI and price. Trade in direction of the trend, wait for pivot points.
     
    Last edited: Mar 21, 2015
    #15     Mar 21, 2015
  6. taowave

    taowave

    I find crossing above 80
     
    #16     Mar 21, 2015
  7. taowave

    taowave

    Apologies,disregard the above..I dont trade the ES,so my testing isnt relevant
     
    #17     Mar 21, 2015