SPY DEC 30 400/ JAN 6 397 DIAGONAL CALL
We've been selling off since December 13th so this strategy is going to be used more as a hedge just in case we get a year end rally to the upside.
It's been basing the last five days in this 380 area and may be setting up to push higher in the short term.
NO stops, I'll be set up for max loss and less than 1% risk of entire portfolio.
My target of 400 was determined more as a psychological level. End of the year even number. It may not get there by end of next but I'll watch this throughout the week next week.
If this decides to go lower, I'm set up for max loss so I'll just move on to the next trade.
If this stays in the 380 area all next week I'll have the 397 strike until the 6th.
If this goes higher, I'll close this out once it get tos 400. It may not want to get to 400 by next week, maybe 395? I'll have to watch this throughout the week next week to see if I wanna close this before.
If this gets to 400 by the 30th, I'll close out the entire combo and move on. If this stays below 395 by Dec 30th, I'll want to hold on to my 397 strike until Jan 6th.
It's been basing the last five days in this 380 area and may be setting up to push higher in the short term.
NO stops, I'll be set up for max loss and less than 1% risk of entire portfolio.
My target of 400 was determined more as a psychological level. End of the year even number. It may not get there by end of next but I'll watch this throughout the week next week.
If this decides to go lower, I'm set up for max loss so I'll just move on to the next trade.
If this stays in the 380 area all next week I'll have the 397 strike until the 6th.
If this goes higher, I'll close this out once it get tos 400. It may not want to get to 400 by next week, maybe 395? I'll have to watch this throughout the week next week to see if I wanna close this before.
If this gets to 400 by the 30th, I'll close out the entire combo and move on. If this stays below 395 by Dec 30th, I'll want to hold on to my 397 strike until Jan 6th.
Trade active
Comment:
This is more than likely going to expire worthless.