Sunday, July 26, 2015

Exit Short Term SPY Puts/Hedge From Last Week

Last week I made a post suggesting that there was a negative skew to forward price action based upon my analysis of options data and my real money sentiment/trading algorithm.  The suggestion was that a 50% limit order gain be used on an ATM Sept expiry option.

From Monday's close when that post was written, the suggested option (Sept 212 put) is up about exactly 50% and SPY is now at potential support of a large gap up from a couple weeks ago.

So, it seems wise to exit that put option for the time being.

I looked at some comparisons based on last week's sell of, and the data suggests a short term rebound over the next few days.  Beyond that I don't have much to offer other than what I've already posted over the last few weeks.


Pete

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