Option Trade:
Buy to Open PUT strike @ $283 when $SPY was trading at $283.27 on August 3, 2018. The premium I paid was $235.00 + commission of $0.71 with expiry date of August 31, 2018. Cost of trade is $235.71.
Reason: I am betting $SPY will go down at one point in August below $283, but time decay is of the essence. The fast $SPY dips below $283, the quicker I can exit my trade with a gain. Let's say by the end of the day $SPY goes down to $282... I can potential close my trade for $100 profit of the $235.00 I paid out.... Netting 43% on very little money gambled. But if $SPY goes above to $284, I can potential close my trade for $100 loss as well. It is very price sensitive... that is if I decide to cut my winnings or losses in a day. But I bought 20 trading days to see the price fluctuate...
Update: Aug 10th - blew my chance to get out with a $40 gain. All week, I've been down of upwards of $100 loss... but I just never know when the market will turn... got another 3 weeks to see it burn.
Aug 13th - sold my $283 PUT when $SPY was trading at $282.23 per share for $59 profit, 25% gain. Early morning hours, $SPY was trading above $283.00 and I was down $40. This goes to show you how fast a trade can turn on you. So I am making an exit before it rises again, but of course it always drops some more after I sold it. UGH.
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