Sunday, December 28, 2014

SPY Put Options

In reference to the recent post I made regarding the Put/Call ratio sell warning for the S&P 500, my option limit order did not fill on Friday and I have decided to change the order to a limit order to buy the Feb 20th SPY 210 put for 3.65.

So the strike price is changed as well as the limit order.

This is based off SPY rising $2.00 (or almost 1%) further from current levels before topping.  Even the most skewed negative future returns after these signals have seen brief 1-2% rises before peaking prior to a meaningful pullback.

The exit order would be to sell at a limit of 8.00.

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