So as you can see on the Daily Chart of the SPY we're nearing a Monthly Demand Zone which should be pretty powerful. I'm using the MACD Indicator on this particular move because you can visibly see the downward movement so there should be a very Bullish counteraction. This should provide a nice setup for Credit Spreads. When it dips into Demand Zone we should see a nice rally. But remember, the market does everything in two legged moves so trade accordingly. Feel free to ask me any questions. I'm an Options Trader Only so my strategies involve nothing but Options.
Godspeed Traders!
Trade active
⋅
So Yesterday I had sold Put Spreads and today when I saw the little rally I went ahead and placed Credit Spreads on the Call side to make an Iron Condor since I was thinking it might be ping ponging between 440 and 430 for a while. I always play it safe and do around .10 delta on both sides so I have around 90% chance of profit. Around 50% gains I'll close positions.
Godspeed, Traders!
Trade closed manually
⋅
Closed the Call side of Iron Condors. It looks like it will rally so I'll just collect Put Spreads.
Also if im holding some calls and they’re green atm, should i sell and wait for the dip?? Or ride it out? Ty again
SandyToesTrader
⋅
@ramzikarmy, Hi! Depends on the Theta decay. If theta is high it is best to take profits and then just wait for another scalping opportunity.
If you're more into swing trades with options I would say choose an expiration date of around 60 days. If I buy Calls I usually prefer to open a Spread so that way I don't worry about the theta decay and it is less risk.
So it all depends on your strategy really.
ramzikarmy
⋅
Hi! Just wondering what a two legged move is? Thanks