SPY Bear Wedge Fall Out

FX:SPX500   S&P 500 index of US listed shares
167 0 0
Selling pressure is building in the S&P             and using cheaper OTM put options is an excellent way to capitalize on the increasing pressure. Buy OTM put options with deltas around 20-25 and scalp the gamma value, you will only need a small downside move after entry and set a limit order to automatically close the position at the desired profit level.
Here is an example in the SPY             using the $170 strike price. (not real values but close)

Desired net profit $100
Dec             . 170 Put options, Est price.50 cents
Deltas: 22.25
Gamma: 3.72 (net scalping value)
#number of contracts: 27 (rounded up)
Est trading cost per share: .02 cents
Gross gamma value rounded up: .06 cents
Est negative SPY             movement to achieve desired net profit: .27 cents
%of movement to 5 day average true price range: 22%, low percentage, high probability of profit
Entry price at .50 estimated
Limit to sell at .56
Gross profit: $162
less cost: depending upon your trading platform
Net profit: Should be $100 and possibly more depending upon your commissions

That is how I scalp the S&P             using cheaper OTM options up or down.

Ideas Scripts Chart
United States
United Kingdom
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out