Trade I like with SPX at current $2115 level

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With SPX near all time highs at $2116 and VIX very low at 12.85, this is a trade I am considering in SPX.  Looking at June Expiration.

Buy 1 2180 call  Sell 4 2190 Calls   and Buy 3  2200 Calls. Looking to do for total credit of $190 and margin or risk of $1801.

Expiration Breakeven on the upside is around $2194, haven’t  been there yet! No downside risk and an expiration yield of around 11% as long as we are  2190 or lower at expiration.

options trading courses

SheridanTV LIVE at 1pm CT. Dan talks an AAPL Trade.

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Join Dan and Johnny today at 1pm CT.

Dan is going to talk about the best option trade in AAPL.

Watch Free and LIVE only at www.SheridanTV.com

 

Best strike to sell for Covered Writes Today?

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Covered Writers are nervous! SPX is $2100 today, 20 points off the all time highs. VIX is around 14, in the lower end of the range. With prices in the upper end of the range and VIX levels in the lower end of the range, I would want more downside protection for my covered writes. Solution? Sell Calls at-the-money or 5% in-the-money to get more downside protection. In many cases, going at-the-money or In-the-money for your short strike with Covered Writes, you can get between 4-7% more downside protection than traditional covered writes which sell out-of-the-money options.

VIX over 14 today, what does it mean?

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Doesn’t mean much yet! What has happened is we have had 2-3 days in a row  where SPX has backed off the highs of $2120 a bit. Too get the VIX cranking up near 18, we would need 2-3 more days down with a little more speed. What do I mean? We need 2-3 days down where SPX moves 1.25% or more, over 25 points in a day. That would stir up VIX and get it moving toward 16-18 level. With Volatility levels still relatively cheap, if I needed to adjust a short Vega trade like an Iron Butterfly, Put Credit Spread, or Iron Condor, I would adjust my position deltas with a long put in today’s environment.

Wrong Data on AAPL, new prices and strikes for Bullish Butterfly

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I apologize, used wrong price information on AAPL. Was looking at AAPL in our back testing software and had the wrong date. What to do today. AAPL is backing off again today and sits around the $126 level. Shock? No, the stock is still up 15% over the first 4 months of the year! I still like the stock and am comfortable in this 124-126 area establishing a slightly bullish limited risk strategy like an Bullish Call Butterfly. Focusing on the calls in the May 29 expiration series. I’m considering this Bullish Call Butterfly. Buy one 126 strike, Sell two 128 strike, Buy one 130 strike. Total debit is $20. If I do the trade 1-2-1, total debit or cost or risk is $20. If I do the trade 10-20-10, the total debit, cost, or risk is $200.

Wrong Data on AAPL , new prices and strikes for Bullish Butterfly

/0 Comments/in , , , /by

I apologize, used wrong price information on AAPL. Was looking at AAPL in our back testing software and had the wrong date. What to do today. AAPL is backing off again today and sits around the $126 level. Shock? No, the stock is still up 15% over the first 4 months of the year! I still like the stock and am comfortable in this 124-126 area establishing a slightly bullish limited risk strategy like an Bullish Call Butterfly. Focusing on the calls in the May 29 expiration series. I’m considering this Bullish Call Butterfly. Buy one 126 strike, Sell two 128 strike, Buy one 130 strike. Total debit is $20. If I do the trade 1-2-1, total debit or cost or risk is $20. If I do the trade 10-20-10, the total debit, cost, or risk is $200.

Sheridan Mentoring Seminar June 25-26

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The Option Trading event of the year is June 25-26 in Chicago. We will have about 11-12 speakers over 2 fun packed days. Event is filling up, sign up this week. Click here