MarWk1 and the SPY looks like they are back on a bullish track again. The selling opportunity for a Put Spread yesterday at $144/145 at a premium of $0.06 is totally gone. Sigh. I was staring at that opportunity for a while, but decided that I needed more "ammunition" in case I needed to place a contingent order for Friday during expiry.
The decision to place a trade on Monday was as a result of the uncertainty in the Italian Elections, and the persuasive power it had on the US markets. Admittedly I didn't expect to see such a huge negative reaction in the markets by Monday markets close. A drop of $2.89 was a tad unnecessary in my opinion, but I am not complaining.
I sold a Call Spread at $154.5/155.5 at a premium of $0.04. Had the markets gone down further by Tuesday's market close, my trade would have been iron-clad safe, but in an interesting twist, after Wednesday's market close, the current price of the SPY is right where it left off on Monday trading day. Should I say, almost exactly where it left off? ;)
If it wasn't two days till expiry, I would be quite bothered by it, but since it is already Thursday, I would think my trade is quite safe. :) Well at least it looks safe at the moment. I don't think there is enough buying power in the market left to push prices till $154.5 by Friday, but as they say, it's anything goes in this markets. I will have to monitor closely, and if need be, I might have to cut loss. :(
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