Winning-Options.com

This has been a tough month for most types of option trading strategies, with the possible exception of being long puts. Even that has its moments, with the kind of intra-day swings we have been experiencing. The market is oversold and yet the rallys wouldn’t stick. Not sure if the one in progress now will. But we don’t want to be around to find out.

With 2 and half days to go, and a relief rally in progress, I bought back the 1180/1150 Bull Put Spread for a debit of 0.70 (recall we sold this spread for a credit of 1.70). With that gone, we no longer have any risk to the downside, and lots to the upside (except for August 1100/1075 position). Market can now proceed with its descent, for all I care!

With this rally, I am also adding more Bear Call Spreads. Specifically, I am selling the SPX 1330/1355 Bear Call Spread (sell SPX 1330 Call, buy SPX 1355 Call). Credit obtained $1.50 per spread. At this moment, IV for front month is 32.30, short call delta is at 9 and short call is 102 points away.

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