SPY calendar spread idea hedge election & volatility play

27 באוק׳ 2020

SPY closed on Monday 10/27 for $339.42, it's ATR for the past 5 days now is 11.50/DAY, close to close, intraday is a different story. So all things being equal, which I'm sure they won't be, lol, a SPY calendar spread heading into election day on 11/03, should be a good play on volatility possibilities. The base trade would be to buy to open a 10/06 $340 straddle for $15.94($1594) (call = 7.70, put = 8.24) and sell to open a 10/28 $348-332 strangle for -$.90($90) (call = -.21, put = -.69), for an opening trade of $15.04($1504). Now, once you have this position, you will be given the chance to write 3 more contracts to continue to get a money credit along the way. You don't want to sell contracts at any closer strike price distance that would result in a loss by it's intrinsic value from $340, so at the worst break even point. Also, depending on the price action the next 9 trading days until your 10/06 expiry, you may have a breakout or breakdown in SPY share price, that will justify closing out one side of the trade or holding another side of the trade, without writing a contract. Good luck and happy trading friends...

28 באוק׳ 2020

עסקה פעילה

I think a good play if you're in on this trade since Friday, would be to buy to close 10/28 332 Put side and sell to open a 10/30 Put at your discretion...

28 באוק׳ 2020

הערה

Checkout my price and volume indicators:

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