I currently have a 106/101 vertical put spread. That means I bought the 106 put and sold the 101. The money I received for the 101 helped finance the cost of the 106. The goal is for the market to go down to 101, and stop by opx. That way, I wouldn't have too buy back the 101's as they would expire worthless, and the 106's would be worth 5 points per contract.
If the move down goes below 101, then I'll have to buy them back. I can't lose money on the 101's as I own the 106's. But, I'm capped at a maximum of 5 points profit. However, that's a safer way to play options then to buy straight puts. Yes, it could go down further, but you never know? So, it's best to do spreads. Hope that makes sense to you?
So little money. Only one bullet left in my gun. My “research” told me that a steep correction or crashette was imminent. The most bang for your buck when the market crashed is out of the money puts.
I made forecasts like that too… before I started putting all the pieces together. We are headed down to at least 920, if not 875 area.
The monthly charts have turned down, and turning them back up is like trying to park a 747 in downtown New York. It's ain't going too happen. Down for several months… 1200 is out of the question for now.
March S&P E-mini Futures: I am going to bet on an upside breakout today. My range estimate is 1064-1082. If I am wrong and the market spends an hour below 1064 I will conclude that the ES is headed for 1045 before a sustained rally can start. I still expect the 1041 low to hold and think that a move to 1200 is underway.
I believe the Retail Sales, Job's Number's, and the Greece bailout news will be enough to push this market over the edge today. The elevator should be heading down soon!
I love it when a plan comes together…
Something happened. Futures are tanking.
I currently have a 106/101 vertical put spread. That means I bought the 106 put and sold the 101. The money I received for the 101 helped finance the cost of the 106. The goal is for the market to go down to 101, and stop by opx. That way, I wouldn't have too buy back the 101's as they would expire worthless, and the 106's would be worth 5 points per contract.
If the move down goes below 101, then I'll have to buy them back. I can't lose money on the 101's as I own the 106's. But, I'm capped at a maximum of 5 points profit. However, that's a safer way to play options then to buy straight puts. Yes, it could go down further, but you never know? So, it's best to do spreads. Hope that makes sense to you?
So little money. Only one bullet left in my gun. My “research” told me that a steep correction or crashette was imminent. The most bang for your buck when the market crashed is out of the money puts.
What type of spread? do you write options?
I made forecasts like that too… before I started putting all the pieces together. We are headed down to at least 920, if not 875 area.
The monthly charts have turned down, and turning them back up is like trying to park a 747 in downtown New York. It's ain't going too happen. Down for several months… 1200 is out of the question for now.
From Carl Futia's blog
March S&P E-mini Futures: I am going to bet on an upside breakout today. My range estimate is 1064-1082. If I am wrong and the market spends an hour below 1064 I will conclude that the ES is headed for 1045 before a sustained rally can start. I still expect the 1041 low to hold and think that a move to 1200 is underway.
Good Morning Earl…
I believe the Retail Sales, Job's Number's, and the Greece bailout news will be enough to push this market over the edge today. The elevator should be heading down soon!
Yes indeed! And Good Morning, Leo.
Comments are still here Earl… refresh your page. This comment I'm now making to you should bring the comment count to 14.
Hmm. There were comments here yesterday. Anyone eat them?