I bought the call on Friday morning. By Friday's close, I had $475 in profit.sweetandsour wrote: ↑01 Nov 2022, 07:49 SPY pre-market was above 390, and it opened right at 390, but quickly retreated to pick up where it left off yesterday in the mid 380s. My only position right now is Abt 20 shares of SPY at 390 that I bought back when 390 was support. If it'll get to 400 I'll sell it. If/when I gain confidence I'll buy a call like Del is doing.
My FA still expects SPX to go back to 3500.
Btw, for anyone buying heating oil, or driving a diesel, watch and plan for shortages and higher costs.
As of 10:30 on Tuesday, I am back to break-even. The market is not happy about this morning's jobs report, which shows the employment is still tight and strong. Mr. Market reckons that the Fed will take this as a sign that more aggressive tightening is needed. More rate increases.
I am still bullish on SPY. I will give it the rest of this week, and maybe next week, to climb on top of the SPX = 3900 mark. If SPY reaches 391 to 392, I will see about $500 profit. I will probably close at that point. It is much safer to bank a tidy profit quickly than to hold on and hope for recovery.
If I don't close at 391 this week, I'll to see 392 next week to make the same profit. Time value never stops eating at a long option's value.... like termites.
On the other hand, today's pull-back has really helped my condor that expires tomorrow afternoon. I'm in the middle of my table, just 6.5% chance of getting into trouble. I have $6000 at risk. I got paid $1326 in premium last week. I'll set up another condor on Wednesday late afternoon or Thursday morning, after the market digests the latest Fed statements.
As I am doing well on the condor, I don't mind if I fail to make much on SPY.
However, if SPY had gone up a lot this week, then I might have given some back on the condor. The key is to have something in a winning position, whether the market goes up or not.
Meanwhile, the shares I'm holding in XLE keep chugging up the hill. I've made just over $2000 on my 100 shares, plus selling puts and calls.