Friday, November 19, 2010

UPDATE: SPY, AMZN - One Day Trade Analysis

SPY is trading $119.53, down 0.4% about 10 minutes after the open. The LIVEVOL™ Pro Summary is below.



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Yesterday I posted this blog:SPY - One Day Skew Trade.

Specifically we looked at:
Buy the Nov 26 weekly 119 put for $0.59 and sell the Nov monthly 119 put @ $0.18. This spread pays $0.41. I like this trade for a few reasons: ...snip...

I have included the Options Tab as of the open (ish).



As of this snapshot, the Nov 26 (W) 119 put can be sold @ $0.75 and the Nov monthly can be purchased for $0.17. That's a $0.58 credit on a $0.41 bet. That's a nice gain on a low risk bet even after commissions, that's ~ $0.13 or 31%.

Similarly, we looked at a trade in AMZN for one day. You can read that post here:
Amazon (AMZN) - Short-term Skew Peaks on Market Fear. The Summary for AMZN as of ten minutes after the open is included below.



We analyzed:
Buy the Nov 26 weekly 155 put for $0.58 and Sell the Nov Monthly 155 put @ $0.14. Pay $0.44 for the one week spread. Look to close tomorrow possibly.

Let's look to the AMZN Options Tab:



As of this snapshot, the Nov 26 (W) 155 put can be sold @ $0.43
and the Nov monthly can be purchased for $.02. That's a $0.41 credit on a $0.44 bet. Adding commissions back, this was like a $0.07 loser... blah...

This is trade analysis, not a recommendation.

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1 comment:

  1. Hello,

    The theme of your blog is very beautiful and the article is written very well. Day trading is the buying and selling of various financial instruments, such as futures, options, currencies, and stocks, with the goal of making a profit from the difference between the buying price and the selling price. I am hoping you post again soon. Thanks................

    ReplyDelete