Few more days to bid farewell to 2015. It is a very fruitful year for me as an options trader. I am also very please that I have taken Continue reading “Short Note – 2015”
Month: December 2015
S&P500 ETF (SPY) trade – Update #2 And Merry Xmas!!!
Merry Christmas everyone! As today is also US holiday , for those who have credit spread, you should be glad as time decay is on your side!
SPY Bull Put Credit Spread trade is doing good and we can consider to close the position next week to capture 50-60% of the premium collected. Continue reading “S&P500 ETF (SPY) trade – Update #2 And Merry Xmas!!!”
Few thoughts on options trading through Q&A Part #2
Continue reading “Few thoughts on options trading through Q&A Part #2”
Trade adjust/repair method #2
Trade adjust/repair method #2 base on the original trade. For trade adjust/repair method #1, you can refer here
So, this is what we have done. We have created a Bull Put Credit Spread and capture $1.20 ($120 per options contract) premium when SPY is trading at 200. Continue reading “Trade adjust/repair method #2”
S&P500 ETF (SPY) trade – Update #1
You may refer to the original post here. S&P 500 Index Futures (/ES) validated this trade prior US market open and this trade (SPY Bull Put Credit Spread trade) is taken when US market open and premium $1 ($100 per options contract) is captured.
Trade adjust/repair method #1
I did mention about the important of trade adjustment or repair in the previous posts when we trade options. Let me kick start the first method in this post!
It is always easier to illustrate via an example. Let’s assume we have a Bull Put Credit Spread that consists of 2 options trade as per below:-
1. STO SPY 195 PUT strike, Jan wk5 2016, 39 DTE, premium $3.3
2. BTO SPY 190 PUT strike, Jan wk5 2016, 39 DTE, premium $2.1
Quick update on my project
I am boosting up my web developing skill now in order to roll out my options website in Jan 2016. I feel great to return to the coding world after so many years.
I will continue to blog and I will integrate the two (my blog and my website) to create more value to the readers.
May the force be with me 🙂
S&P500 ETF (SPY) trade
DOW Jones and S&P dropped two consecutive days post rate hike last Wednesday. I will monitor Monday’s S&P 500 Index Futures (/ES) before market open to decide if I will proceed to initiate a Bull Put Credit Spread against S&P500 ETF (SPY). My view is that the SPY has a high probability of trading range-bound/consolidation between 195 to 215 in the next 1 or 2 months. Hence, I am keen to construct the following trade after the market open tomorrow:-
Options Strategy – Bear Call Credit Spread – Strike selection
Considering we have chosen Bear Call Credit Spread (bearish outlook and we expect the stock price to drop) as a strategy that we intend to deploy, we may need to choose a pair of strikes. Continue reading “Options Strategy – Bear Call Credit Spread – Strike selection”
Options Strategy – Bear Call Credit Spread
In the previous post, we discussed Bull Put Credit Spread. In this post, let’s decompose and explain Bear Call Credit Spread using Lifestyle Options Trader’s method.
Bear Call Credit Spread (BCCS)
1. Bear -> Bearish Outlook
2. Call -> Call Options
3. Credit -> Receive premium Continue reading “Options Strategy – Bear Call Credit Spread”