PDA

View Full Version : SPY weekly options


Tape Reader
10-17-2015, 08:59 PM
Anyone trade SPY weekly options? (Puts and calls on the S&P.)

If one is correct, 10 to 1 on a Friday is likely. 100 to 1 is possible.

On Friday, when the time premium is almost zero, an “in the money” will go point for point (almost) with the cash.

An “out of the money” will increase dramatically.

It is really a “bet” not an investment, which should resonate well with Gals/Guys on this site.

magwell
10-17-2015, 09:09 PM
Anyone trade SPY weekly options? (Puts and calls on the S&P.)

If one is correct, 10 to 1 on a Friday is likely. 100 to 1 is possible.

On Friday, when the time premium is almost zero, an “in the money” will go point for point (almost) with the cash.

An “out of the money” will increase dramatically.

It is really a “bet” not an investment, which should resonate well with Gals/Guys on this site.Explain as simple as you can, how a person should play that ..........;),

_______
10-18-2015, 07:00 PM
Explain as simple as you can, how a person should play that ..........;),

The same way the rational part of you should play any investment offer where the pitch is a 10-1 or even 100-1 ROI in 1 week.

Do you know who fish is in this scenario?

Tape Reader
10-18-2015, 07:48 PM
The same way the rational part of you should play any investment offer where the pitch is a 10-1 or even 100-1 ROI in 1 week.

Do you know who fish is in this scenario?

Correction: one day!

Tape Reader
10-18-2015, 09:11 PM
Explain as simple as you can, how a person should play that ..........;),

For simplicity, I will call the option premium “rent.”

If you think the S&P will advance in price, one would buy a “call” option.

If you think the S&P will decline in price, one would buy a “put” option.

On Friday, with only a few hours to expiration (dispossessed), the rent is cheap. An “at the money” call could appreciate 10x if the S&P advanced 15 points or so. A put would yield a similar return if the S&P fell 15 points.

The huge gains would happen if one bought an “out of the money” option that turned into an “in the money” option.

Of course, this was not meant as educational. Much more can be found by Googling put and call options.

magwell
10-18-2015, 10:46 PM
Thank you TR........:ThmbUp: