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.
Stopped out of TZA at 10.97
red i hope u got out of your puts this morning
be very very careful things are going to come fast
I got some at 11.17 and going to add more.
Tic Toc, Tic Toc… time is coming near!
Back in TZA at 11.04
Out of TZA. Running with the money.
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?