Note: The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither PSW Investments, LLC d/b/a PhilStockWorld (PSW) nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither PSW nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance, including the tracking of virtual trades and portfolios for educational purposes, is not necessarily indicative of future results. Neither Phil, Optrader, or anyone related to PSW is a registered financial adviser and they may hold positions in the stocks mentioned, which may change at any time without notice. Do not buy or sell based on anything that is written here, the risk of loss in trading is great.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only intended at the moment of their issue as conditions quickly change. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Contact us: support@philstockworld.com
© Copyright - PSW, LLC.
2024
December 11th, 2019 at 10:53 am
Closing/Jeff – If you have 30 spreads, like the WBA Jan $47.50/50 spread, try selling 5 at a time so as not to get burned.
As WBA is down 0.37 today and the delta on the $50s is 0.91, I'd offer 0.35 less than last or $7.85 for 5 and I'd ask for $11 on the $47.50s and see which one fills first. If they both fill, my $2.50 spread goes for $3.15 and, whichever one fills first, I then tweek the other to sell it as close to net $2.50 (or over) that I can. Once I fill 5 and 5, I offer up the next 5 and 5 until they are all gone.
Fills go the same way, only take a position if you get a BETTER price. You don't NEED any of these positions – why chase?
Also, use your head. If the stock is going down and the market is going down – sell the long calls first and then sell the short calls – a little swing trading goes a long way towards improving your spreads.
Additional ideas would be appreciated.
Ponds/Yodi, Winston – I'm never ashamed to go back to the well. People fish the same lake their whole lives – you just need to know the difference between the waters that replenish themselves and ones who don't.
Oops, Oil just collapsed – taking the indexes with it. ROFL OPEC!
How was that unexpected, API had a net build of 10Mb and this is a net build of 10Mb – just in different places. Traders are such morons!
More to the point though – yet another big holiday weekend where demand is a bust.