The past 2 days, SPY has the classics trading pattern when the ticker is of mildly bullish momentum. The stock usually gap up from the previous close, it will however comes back down to close that gap it created during its opening before reversing back up higher.
The set up was to either get in early to open the trade, in my case here selling cash secured put with little intention to take assignment, with strike around the strike of yesterday's closing value Going in early will yield a higher premium, or to wait out for the price to play its course, when it dips back lower to close the gap (sometime a short distance away) before reversing back higher up.
This trade is of such. And the option will expire worthless today once the trade is updated. Will be keeping the full premium collected.
| Side | Price | Filled | Realized P&L |
|---|---|---|
| Sell Open | 0.38 1Lot(s) | -- Closed |
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- DeltaDrift·09-11TOPNice, but this might use up quite some margin?1Report
- Mess0M·09-11Great strategyLikeReport