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SPY Sep 30 305 Call Update


My experience with options can be boiled down to being almost on target. I may have to consider holding on to positions longer than I was initially "trained" to do. The rule of thumb with options trading I try to adhere closely to is that if the option price I bought is down 50% or more, I cut the loser and move on. What I didn't factor was the time left for the market to make my losing position into a winner; I chose to close the position out of routine mechanical habit.

The Sep 30' 305 option  Call was an experiment in buying cheap call options that are ready for a significant price increase after selloff/correction. The idea is to be able to generate income in both a low and high volatility market while maintaining a portfolio.

The Sep 30' 305 Call is up 84%
"I closed it with a remaining $19 of value left. It was a 17% long shot that this option would be profitable."
The entire post can be read here.









Comments

  1. hey trin,

    you gotta do what you gotta do. I bought some far out options and just recently learned that they coin them as leaps. these are positions where I have the luxury of not giving a f**k about what happens but at the same time it doesn't cost me a whole lot of money, relatively speaking.

    hopefully, there will be more action for you in the coming months. maybe we will get some kind of sustained move to end the year and it'll be one of those things where you just either buy or sell and just move away from the computer.

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  2. Hey Rhiese,

    leaps are a great way to participate in the market with a lot less capital. I may consider using multiple time frames to include leaps as well. I am excited about the next couple of months as I prepare to actively trade my portfolio. In the mean time, I will put on 1 option trade a month up till 2020.

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