A New Position in SPY
home | Options Trading Archive | A New Position in SPY

A New Position in SPY

Henry Gambell
Printer-Friendly Format

The Monday that starts expiration week is a great time to start moving your long call or put options trades out into the next expiration month. This will give your contracts more time to mature and less of a chance of falling victim to IV collapsing. (As a general rule I like to have front month options closed out the Friday before expiration). It's also a great time to start considering stocks you'll be looking to pin on Friday, a topic we'll cover more starting Wednesday.

So now that our bigger picture trades will fall into NOV or DEC expirations, what setups are forming that best take advantage of this? One I'll be looking to initiate today is a long play on SPY. This market was a bit rough on us earlier in the year but now that we've had multiple Squeezes fire off to the long side and have two clear areas for stops and targets, this is a setup I like. I'll be bidding for the NOV 112 SPY Calls and use the stops and targets noted on the daily chart provided. I'm not expecting a great deal of volume with today being Columbus Day, but we should be able to get a good position in this ETF.

Trade described: Buy To Open NOV 112 SPY Call

Positions at time of publication: Bidding for SPY Position

Symbol SPY
Action (Buy to open/Buy to close/Sell to open/Sell to Close) Buy To Open
No. of contracts (where applicable) 1
Expiration month NOV
Strike price 112
Type (Stock/Call/Put) Call
Trade price $6.00
Spread (better than/none) xxxxxxxxxxxxxxxx
Position? Long
Chart Source? TS & TOS
Stop $114.50
Target $122.12



Printer-Friendly Format