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Home › Forums › Swing Trades › Overbought SPX
Market’s up 4.5% in a 5 day period, that doesn’t happen often and it means we are overbought here.
I expect sideways action so we want to look at bear call spreads instead of a put buy strategy.
Here’s the trade:
SEll to open SPX Oct 2020/2025 Bear Call Spread @0.80
Add to the trade at 1.20 and 1.70
All out at 0.10
The bid/ask spreads are stupid wide so make sure you use limit and not market orders.
Filled .90
filled .90
Offering 1.30
Filled 1.30
Bidding to close this round @0.90
No more adds today, not willing to go full size all in a single day’s trade. If SPX continues to rip, my adds will be on higher strikes.
Filled on third round at 1.70, will close out this third add at 1.30.
Nice dip in the market.
Closing out the third round at 1.20.
Exiting second round at .80
Will re-add 2nd tier at 1.40 and 3rd tier at 2.00
Filled on 2nd tier again at 1.40, will close at 1.00
Bidding 1.00 on 2nd tier on the open.
Edit: Filled
Here’s the action so far:
Entered Tier 1 @ 0.80
Entered Tier 2 @ 1.30
Entered Tier 3 @ 1.70
Closed Tier 3 @ 1.20
Closed Tier 2 @ 0.80
Re-Entered Tier 2 @ 1.40
Closed Tier 2 @ 1.00
For a single spread in each tier, that is a max risk of 1120 and 140 has already been pulled out of the spreads.
Out Original Round at 1.00
I’m *completely* out of all tiers, will wait for a squeeze higher if I want to re-initiate.