Friday, August 27, 2010

*UPDATE S&P 500 (SPY) - Closing the Weeklies Trade


SPY is trading $106.28. The LIVEVOL™ Pro Summary is below.

Yesterday I wrote this: S&P 500 (SPY) - Trading the Weekly Skews

We analyzed this trade:
Buy 1 SPY (W) 9-03-2010 106 put for $1.59
Sell 2 SPY (W) 8-27-2010 105 puts at $0.31
Buy 1 SPY (W) 8-27-2010 104 put for $0.19

The Livevol Pro Options Tab is included below for closing prices (click to enlarge):

Now we close it for a win:
Sell 1 SPY (W) 9-03-2010 106 put @ $1.40
Let the short 105 and long 104 puts expire worthless.

Disclosure: I did this trade. Paid $1.19 total, sold @ $1.45. I am naked short the Aug 27 (W) 105 puts in the SPY. Trade journal will be posted this Saturday as usual.

Note: If the market collapses in the next 4 hours I'll get crushed to the 2x short puts. It's a reasonable approach to hold until later in the day before closing, or to buy 1 of the 105 puts back at the very least while also holding onto the long 104 put.

This is trade analysis, not a recommendation.

Legal Stuff:

1 comment:

  1. any analysis on spy from Friday close and today open ? :)
    September puts and calls
    Great blog guys