On my other accounts I sold a June 19 SPY $280 covered call for $13 so either $293/1000 shares = a lot or reduce my pivot entry $277 down $13 = $264 and have $270 and $230 Put hedges from last week when mentioning time to layer in hedges.

DE I had said it was a buy under $120. It didn't quite reach that at $121 but certainly an entry there for $130 first fruits gains.

oldarmy1 said:

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DE I had said it was a buy under $120. It didn't quite reach that at $121 but certainly an entry there for $130 first fruits gains.

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I bought this at $120 just after the open. Thanks for the recommendation.

fightintxag13 said:

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oldarmy1 said:

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DE I had said it was a buy under $120. It didn't quite reach that at $121 but certainly an entry there for $130 first fruits gains.

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I bought this at $120 just after the open. Thanks for the recommendation.

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Take some off or write a $123 covered call out a week or two for better premium.

Damn, what a sell off after a great run up.

See how shorting against your calls makes you more than the premium? $283.52 - $281.49 = +$2000 gained and I just covered the short. Still own the calls.

oldarmy1 said:

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DO NOT let go of Jun 19 deeper SPY put hedges and if you have none then if we get around $290 anytime soon get in them. Once PPP 8 week coverage is coming to a close I predict a mass bankruptcy filing period that will rock the markets.

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1) Wait to get SPY close to 290
2) Sell SPY Call Credit Spreads 310/300 for mid June
3) Sit back, bite nails,hang on to your pants.

GOT IT OA!

Too many people see options as all or nothing. You can use them as backstops to more aggressive tactics 100% risk free multiple times even. If we get back to $283.50 I'll short again until forced out - and forced out means the calls are running which offsets completely any quick loss on the 2nd short.

Heres current set up on daily charts. Remember that sideways action I said we need to look for....and if that continues it forms what? _________ test answer for class. So we had a short trend down here but it came right to the green major support. This along with the volumes I was seeing was my target area for reversal pivot and BINGO we nailed it spot on. Now we have a potential bullish harami forming but need some more upside this afternoon followed by confirmation move up tomorrow. With the expected news on unemployment it will be a feat so I'll be taking most I can get from today's moves and using covered calls to juice exits for tomorrow.

Note the lower lows and lower highs last 4 days. Always cautious with a bounce off support because bears don't just say "well it held I guess the bulls win." Nope, they say "we cleaned up with our 50% profit covering and bought some cheap calls to not only protect their short but to serve as new short entries when stocks move above the call - similar to what I did earlier only they mean business long term. That means bulls will have to really want it and believe they can create buyer interest by pushing back to mid-channel. We'll see.

McInnis 03 said:

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oldarmy1 said:

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See how shorting against your calls makes you more than the premium? $283.52 - $281.49 = +$2000 gained and I just covered the short. Still own the calls.

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Serious question:
When you're doing this, are you shorting 100 shares at a time? Are you selling $28,352 short per call you have? If so, this just isn't something most of us can really execute, at least not on SPY for certain.

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I'm doing 1000 shares per 10, so yes 100/call. If not enough capital to free flow then at least sell half the calls when we hit above $283.50 and not potentially miss excellent premium gain for the risk of holding the call side.

OR sell all the calls - especially if building capital in account. A rarer double sided win on put/call is nothing to sneeze at

I'll bite, Cup and Handle baby

That was my backup answer

fightintxag13 said:

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Answer: Darvis Box

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Technically you're both correct, although I was referencing the Darvas (correct spelling and I use both spelling time to time - no offense to Darvas) Box that is now forming. What this box gives us again is a clear technical direction once it breaks because the bears have said "no further shall you go up" and the bulls have said "no lower shall you go". Well at some point, as we all know, somethings gotta give between those two paradigms.

So as far as entering an options play, I assume you wait for confirmation either way and then enter?

One ugly intraday head and shoulder now formed

fightintxag13 said:

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So as far as entering an options play, I assume you wait for confirmation either way and then enter?

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Correct!

tempted to enter SHOP lotto puts

If you're buying June 19 dated calls, what's the appropriate date for a put hedge?

Pignorant said:

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If you're buying June 19 dated calls, what's the appropriate date for a put hedge?

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40+ days so June 19th still for put hedges. If your calls take off short term they'll more than offset any decay in puts. But if we run out of time and the markets crater you'll be happy you have them.

Ok, so help me learn here, please. I bought some 6/19 JPM 90c earlier today. What strike would I look at to buy a put hedge? And what premium value respective to my calls?

Ranger222 said:

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tempted to enter SHOP lotto puts

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The 700p's for tomorrow went OFF earlier.

AgEng06 said:

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Ok, so help me learn here, please. I bought some 6/19 JPM 90c earlier today. What strike would I look at to buy a put hedge? And what premium value respective to my calls?

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Oh on individual stocks? I wouldn't buy a put hedge against a stock call. Buy a SPY hedge against ALL of your upside positions. We talked about things such as taking the profits from today's home run SPY put/call trade and using 10% of those profits to buy initial June 19 $260-270 Puts. I would even buy $220-230 Puts if your limited to what that profit can buy. The biggest factor is having them in place before the Darvas Box would break. Ideally you want to buy those Put hedges when we are at the top of the Box, so I wouldn't buy them right now unless you have a lot of bullish exposure.

oldarmy1 said:

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McInnis 03 said:

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oldarmy1 said:

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See how shorting against your calls makes you more than the premium? $283.52 - $281.49 = +$2000 gained and I just covered the short. Still own the calls.

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Serious question:
When you're doing this, are you shorting 100 shares at a time? Are you selling $28,352 short per call you have? If so, this just isn't something most of us can really execute, at least not on SPY for certain.

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I'm doing 1000 shares per 10, so yes 100/call. If not enough capital to free flow then at least sell half the calls when we hit above $283.50 and not potentially miss excellent premium gain for the risk of holding the call side.

OR sell all the calls - especially if building capital in account. A rarer double sided win on put/call is nothing to sneeze at

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So for us poors, and/or folks trading in an IRA who can't short... would it be possible to use SPXS in this same manner?

Awesome, thank you for the explanation!

deadbq03 said:

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oldarmy1 said:

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McInnis 03 said:

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oldarmy1 said:

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See how shorting against your calls makes you more than the premium? $283.52 - $281.49 = +$2000 gained and I just covered the short. Still own the calls.

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Serious question:
When you're doing this, are you shorting 100 shares at a time? Are you selling $28,352 short per call you have? If so, this just isn't something most of us can really execute, at least not on SPY for certain.

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I'm doing 1000 shares per 10, so yes 100/call. If not enough capital to free flow then at least sell half the calls when we hit above $283.50 and not potentially miss excellent premium gain for the risk of holding the call side.

OR sell all the calls - especially if building capital in account. A rarer double sided win on put/call is nothing to sneeze at

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So for us poors, and/or folks trading in an IRA who can't short... would it be possible to use SPXS in this same manner?

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Only options. It doesn't move enough during phases like the last 4 days. Just look at it the last 4 days. All this movement and its tight range. Break the box and THEN it runs. It's down near lows so a $12 June 19 call would be my buy. Haven't checked but if you look at volume today I'll wager a snickers those are either #1 or close 2nd in traded option strikes for June 19