On Tuesday, Sept. 08 we updated the GS (Goldman Sachs) Put Ratio spread initiated on Sept. 02 (See original article), which at the time was showing a 6% return. Over the last two days, the return doubled and we quickly captured 74% of our max profit potential above the $150 mark on GS. Rather than [...]
In my last post on Sept. 03 we wrapped up the SPY Double Calendar spread for a 21% profit and highlighted a new play on GS as a result of an implied volatility spike on Sept. 01 & 02. After a strong overall market sell-off on Sept. 01, GS and the rest of the market continued [...]
We are closing out our double calendar spread on the SPY today for a 21% gain over a 3 week period. From the time the initial Put Calendar Spread was initiated on August 14th (see original article) the SPY fell hard for a day, rallied hard for 4 days, rolled sideways and finally sold off [...]
As of Wednesday, August 26th, the SPY Double Calendar spread that began as a single Put Calendar spread on August 14th (see original post) is now showing an 11% unrealized gain. The position remains a hold at this time. If the SPY breaks above 104 tomorrow (Thursday – August 27th), we will shut the trade [...]
Everyone knows what a directional trader is, but sometimes the world of hedging can seem a little mysterious and cloudy to the uninitiated. In reality though, it is quite simple.
On August 14th we initiated a Put Calendar Spread on the SPY. The rationale behind this initial move is to take advantage of lower prices over time and flat to rising implied volatility in the SPY. The current spread also gives us some profits to the upside should the market want to push that way.
SPX market structure continues to play out in classic form with the 161.8% extension of the June to early July correction acting as current resistance (See chart 1). This natural resistance is coupled with a support / resistance trade off line that began in November of 2008 (see chart 2). The trade off trend line has contained the market several times over the last few months and set up many high probability trading opportunities – whether using option spreads or straight directional trading. It is currently holding the market as well.
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