Hey Guys - I hope all is well - I am new to this site so bear with me - I shorted next weeks Sept 5 2900 SPX puts - is the analysis above for the next several trading days ?
DaddySawbucks
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@David.melilli1018, UMM YEAH YOU COULD LOSE A LOT OF DOUGH BROTHER! I hope to God we get a slight lift in the open like it did today so you can cover.
A 2900 put was probably what, like $40 x100 > 4K? So if it goes down suddenly to like support at 2870 those things will be like $8000, so you will lose double your credit on premium.
If you are anovice option trader then please just stick to selling covered calls on stock you own, worst that happens you lose your stock, o well go buy more.
Shorting options you can lose more than you started with- it' s like trading futures!
LOL - Yea - I said it wrong - I bought the 2900 Puts lol - I shorted the SPX via those puts hahaha - the market just had a feel today like the SPX did not want to keep going - I am praying your analysis is how it plays out - in your experience how likely is this type of analysis correct in regards to the time frame ?
DaddySawbucks
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@David.melilli1018, Expect a pullback within a few days or a week at most. What series did you buy? Always give yourself enough time, I'm long the October 256 DIA puts. I got a bit aggressive on SPY and shorted 291 calls in a vertical spread. You can get killed doing that, I don't recommend it.
david.melilli1018
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@DaddySawbucks, I bought the Sept 5th 2900 puts - I have till next Wed - I swore I would not go short anything ever again as it never works out - you have to be more precise with your time frame - I was excited to see your analysis and it seems like the majority of ideas are calling for some kind of pullback - I don't need anything crazy lol 2885 this week would make me happy -
DaddySawbucks
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@David.melilli1018, Yeah those are risky business but it could pay off we need a small correction and I think we might get one in a few days.
Looking real wiggly today and expect more tomorrow. I could be wrong and I often am, we will see real soon.
lkdahleh
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Superb! I’m short from 2898.7 riding it to 2877 and then will buy it to 2925. We both always have the same analysis :-). Good luck...
DaddySawbucks
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@lkdahleh, I shorted at 2900 I expect pullback to previous high around 2876. Alternate paths are shown for possible courses. It could breakdown lower, although the extreme greed and bullish sentiment suggests another push higher before the real break.
lkdahleh
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@DaddySawbucks, yea be careful, the trend is strongly up, but a retracement to 2874 is not out of the question, but it could not happen. So keep your stop at 2904 in case it doesn’t drop, but I see a drop coming.