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QuantitativeExhaustion
Dec 4, 2012 9:54 PM

SPY Weekly Expirations Continued, Looking for a Gap Up Long

SPDR S&P 500 ETF TRUSTArca

Description

At the end of the day executed CALL positions. Purchased 100 CALL contracts for 144 strike and 70 CALL contracts for 143.50. Would have liked to purchased more, however I've noticed large orders are getting sideswiped by smaller faster orders. So in this case, I broke up my orders into two different strikes without breaking my rules.

Will be selling as soon as price targets green traingle. If price does break above first heavy resistance red line, I'll wait for quick retest and most likely roll-over calls into deeper out-the-money CALLs for Dec. 22 expiration (maybe 147 to 150's).

Also Eur/Usd might trigger a short squeeze which would push SPY higher. The two pairs have had a high correlation. fxtrade.oanda.com/analysis/open-position-ratios
Comments
QuantitativeExhaustion
out at 141.98 before big move. Might have to wait a few days to try this play again.
QuantitativeExhaustion
Time decay is crucial when trading weekly options so timing stock price is very important.

Can't win everytime. At 10:50 143.50's priced as low as .03 -- .04 and 144's .01. Price is back up to where I made the original purchase. So subquently I missed this nice run. Still holding and if I do not see early bullish action tomorrow, I will take a small loss and try again for weekly options expiring next week.
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