I have a quick question about rolling naked puts.
Many traders recommend rolling a put as soon as it gets ATM or slightly ITM. Especially, if it is close to expiration date. Would the same rolling recommendation apply to a put that has 1-2 months to expiration and gets ATM or ITM?
For example, I have UPS Mar 16 $110 put. The stock is at $109.28.
In a normal market, I would probably wait for a while, but in this market, it is easy to get deep ITM.
Rolling out and down would be simple right now.
What is your opinion on this?
Here’s Dan’s free chart of the day view on the market: http://stockmarketmentor.com/2018/02/looking-for-some-clarity-on-the-sp-action-this-should-help-february-08-2018/
Anyone with this fun little book, go to page 38. Since 1952 there are only two instances where a close below the Dow December low in Q1 did not result in additional down moves, on average another 10%. The December low was 23,921.90–so today we closed below that number.
Does anyone know why the market goes in the opposite direction as soon as I put a trade on?
Is that a curse? 🙂
Hey everyone, just wanted to pop in and let you know I’m trading VERY small. Just 1-2 lots of #Fuzzy . Mostly shorts. Fuzzies are very expensive now. It helps to hedge them since hedges are also expensive (credit). But hedging slows them down considerably in movement. I like to get out with 50-100% gains. Where I’m doing best now is scalping /NQ.
I’ve mentioned my ” #Augen Spike Code” in the past (From Jeff Augen’s book The Volatility Edge in Options Trading). It translates price action into standard deviations. It helped me find a crash indicator different from what everyone else was viewing. But I also found an important bottom indicator is when there are 3-out of-5 daily bars with 1-standard deviation up moves. .99 doesn’t count, must be over 1.0. Going back in time w/ the indicator I found anything less than 3-in-5 led to shallow false or short term rallies. So on rally days I’m watching and counting those bars.
Here’s the code if you want it: http://tos.mx/FnguWH
#SPXcampaign Caught this flush with a short call spread.
Sold to Open $SPX Feb 9th 2630/2655 call spreads for 11.15 at 2:57 ET.
Bought to close for 6.00 at 3:54 ET
#SPXcampaign Pulled the plug on this one with the intention to roll later. I feel like we need to test this week’s lows again before we can assume correction is over.
Closed $SPX Mar 9th 2630/2605 put spreads for 9.00. Sold as a 1.5x roll for 2.00 last Friday.
Exited the Final of Long side put from my 3 spreads in Jan 16 time frame..This clears out my Pre-sell-off Longs that I held thru the sell off..
STC 2 Mar09 SPX 2650 Long Puts , Bought at 12.40, Sold earlier at the SPX low today for 49.00..
2pm STO Mar 23 2450/2550 BUPS, 25.00/34.10, credit at 9.10
BTC SPX Feb 9 2645/2640 2.75 loss 260.00