If you think we are going to 1250 by late summer, then a vertical call spread would be the safest play. You could buy the 1150 (which is “in the money now”), and sell the 1250.
You would want the market to go up to 1250 before they expire, and of course you don't want the market to go down below 1150.
I'd rather stay out the market now, as I still see some selling coming soon. The choice is yours of course.
Question for you: I think we are headed for 1225-1250ish by end of may (just my 2 cents) but I do think we get a big correction some time between August and November. I'm a stock and ETF guy more than an option guy but I know you like to use options. Which SPY puts would you buy for that correction?
Over valuation + overbought + yield pressure = -10% over several weeks…. ***IF*** historical pattern holds.
The only thing missing is trend confirmation….. tick tock tick tock….
If you think we are going to 1250 by late summer, then a vertical call spread would be the safest play. You could buy the 1150 (which is “in the money now”), and sell the 1250.
You would want the market to go up to 1250 before they expire, and of course you don't want the market to go down below 1150.
I'd rather stay out the market now, as I still see some selling coming soon. The choice is yours of course.
A quick note: The topping process continues. We may have reached the apex already. Short confirmation pending. No confirmation, no action.
Hey Red,
Question for you: I think we are headed for 1225-1250ish by end of may (just my 2 cents) but I do think we get a big correction some time between August and November. I'm a stock and ETF guy more than an option guy but I know you like to use options.
Which SPY puts would you buy for that correction?
Thanks
Think Carl got some inside info from his cronies at GS!
AAPL above regulatory limit. Any significance?
He must be expecting a pullback of some kind. 1166 is near the bottom of one of his boxes, not a normal place to bail.
Usually he posts his reasoning a bit later.
Interesting given his projection. Probably with all the money he has made, he just wants to go out and play a round of golf!
Carl sold long unit at 1166.50