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

 

I received a .20 cent credit for the spread.

Yes, that was the butterfly I was thinking of.

I actually decided not to go the butterfly route.

I put it in options oracle again, maybe I misread the graph the first time, and this time saw that I would only be protected to about a one dollar and 50 cent move.

So, if it went below 114 or above 117, I'd start losing money.

Anyway, lesson learned. I think next time my strategy is going to be just to buy the position back as soon as it touches my short strike, regardless of where I think the market will go.

--- In OptionClub@yahoogroups.com, "RobertH" <robhansen5252@...> wrote:
>
> What premium did you receive for the 115/118 spread? Is the butterfly you are considering the 115/118/121? How much will you be paying for the butterfly? To get the same premium, you may have to put on additional 118/121 spreads to make up the difference. However, your risk and margin will both be increased. Personally, I like to sleep better at night having a cushion on the upside.
>
> Good Luck,
> Rob H.
>
> --- In OptionClub@yahoogroups.com, "metagunny" <justin@> wrote:
> >
> > 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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