Sell in May and Go Away. If you are bearish and you would like to execute this trading idea, there are several methods you can use. In this post, I will reveal two frequently used methods to ‘short’ the market. However, if you are unsure, stay calm and do nothing! A lot of time, doing nothing can save us a lot of money!
Category: My Strategy
Earnings, to trade or not to trade? Part 1
We are currently in earnings session and over the past few weeks, earnings news streaming in everyday and those who trades earnings should enjoy adrenaline rush. What if you have bought a Put (betting the stock price down) on Google shares? You should be laughing to the bank. What if you have bought a Call instead? You may have lose all your premium paid!
Continue reading “Earnings, to trade or not to trade? Part 1”
Introducing Option Strategies
This is the option chain
Pictorial representation of the option strategy (label)
S&P500 ETF (SPY) trade – Update #3 (final!)
I mentioned SPY Bull Put Credit Spread trade on 20 Dec 2015 with two updates on 21Dec and 25Dec.
If you follow this trade, I hope you have adopted the suggestion posted on 25Dec, which is to take profit and move on to the next trade. However, if you still hold on to this position, you don’t need to worry as well.
Let’s recap this position Continue reading “S&P500 ETF (SPY) trade – Update #3 (final!)”
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!!!”
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
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:-
Is it possible to create a trade that will never lose?
The answer is yes with the help of options! While buying options can protect a stock (see here), buying options can also lock-in a profitable position to ensure the position will never lose.
Let say we purchase Apple stock at Continue reading “Is it possible to create a trade that will never lose?”
Lifestyle Options Trader 