Monday, September 12, 2016

SPY Option Trade Exited for 50% Gain

If entered using a limit order of 1.74 for the 213 SPY call option expiring this week, and using the 50% limit exit order which stats showed has had ~90% win rate on past similar tests, the trade is already exited in today's session for another nice play.

I took a partial position on that order this morning when my limit order of 1.20 did not fill shortly after the open.  SPY would have had to trade about 50 cents lower this morning for it to fill.

This shows what can be a pitfall of trying to get too perfect on certain trades.  The simplest play in this case would have been to buy right at the open as the gap down was indicated.  And the stats were so outstanding that there was not great reason not to.

In any case, for now if you have not entered (and exited) the trade ideas I posted, I suggest standing aside and let things further unfold.


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