RE: [TheOptionClub.com] SPY Just Hit My Short Strike

 

Hi Justin,
 
I am no expert and am still trying to find my way, but I can say I continually hear about the importance of having a plan in place if the underlying moves one way or the other and sticking to it.  H-O-P-E is a four-letter-word in trading I am told and "giving it one more day" is hoping for something positive to happen and at the same time hoping something negative does not happen.  The lack of a plan allows emotion and indecision to enter into the process...not a good thing.
 
I find it is disappointing to have to close a position with little or no profit and maybe a loss after watching it for weeks but the goal is to live to fight another day.
 
As for what you should do now, I have no idea...perhaps someone with more experience wants to weigh in on that. 
 
John
 

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To: OptionClub@yahoogroups.com
From: justin@gunther.com
Date: Thu, 11 Mar 2010 02:06:48 +0000
Subject: [TheOptionClub.com] SPY Just Hit My Short Strike

 

As part of my iron condor position, a few weeks ago I sold the Mar. 20th 115 Call and bought the Mar 20th 118 strike.

The SPY has been flirting around this price for the past few days.

I think there is massive resistance around this price, so I haven't done anything yet.

However, the options are expiring in less than 10 days, so I have a few options.

Since the options are expiring in about a week, I was thinking about creating a butterfly position, since the price shouldn't move past three or four points in the next week anyway.

Or, I could just sit on the position, as I think there is a good chance it will expire below the 115 strike. My only worry if this HAPPENS to be the week it breaks above this resistance level, it will be on good volume and a good surge.

I think we are due for a pull back soon though.

Thoughts or ideas?

Thanks in advance.

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