Jeff 6:48 am on Friday, January 29, 2016
Tags: SPXcampaign ( 2,265 )

SPX puts closed

#SPXcampaign Bought to close $SPX Feb 5th 1750/1725 put spreads for .20. Sold on Monday for 1.50.

john4419 6:49 am on Friday, January 29, 2016

Nice one Jeff
Steve Tung 7:12 am on Friday, January 29, 2016

Jeff:
How did you select those strikes? We’re these Weekly options? No touch? Thanks.
- Jeff 8:18 am on Friday, January 29, 2016
  
  Hi Steve, I sell put spreads when the SPX moves down, and call spreads when it moves up. On Monday, we had some sharp moves down at the end of the day. I look for short strikes below a 10-delta and for a credit between 1.20 and 1.50. That came out to 1750 short strike on Monday in the last half hour of trading. Also, when I am selling something with a short DTE (in this case, 9 days), I want to select a spread farther away than where I think the market will go. Of course, I can sometimes be wrong on that!

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