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Sellput

SPY prepare to sell put at next fresh demand zone AT 261SPY at 261 is fresh demand zone. Prepare to long here, target is 285. 245 is the next fresh demand zone. Sell to open next month (Apr) SPY 245 PUT ; It should be more than $1000 per contract; None stop, Willing to be assigned. Cost is less than 235 per share. Only need 12,000 cash. #1 After this entry, if SPY will go down to 235, which is down more than 30% of 340; it is a good price to buy SPY for long term investment. Once got assigned, sell ATM call for next month instantly. When IV high, sell option will be good. After this step, Cost will be less than 225 per share. Even if SPY will go down to 170 (50% down from 340) in next few months, if I keep selling calls, the Cost will be almost near 170 per share. #2 After this entry, if SPY goes up, Buy to close this PUT at 70% of the sold price within 3 trading days. (Planned as a turning point.) Or Buy to close this PUT if it goes up to 285 (Resistance). This is a "quick win" trading plan. Don't hope too much.
AMEX:SPYLong
by PlanTradePlanMM
8
Take advantage of volatility spike: Sell puts.FUNDAMENTALLY COMPELLING BUY rated by the consensus +47% average target upside Morningstar rating * * * * TECHNICALLY: COULD BE REBOUNDING SOON? GG is down 35% since the intermediate top above $20 reached in early July This is 2.5X more than the consolidation in Gold (-13.74% since July) Such negative performance has brought a spike in volatility The stock has also just completed a perfect rounding top It has also been forming a consolidation base at 12.65 Too early to buy outright, as the direction in Gold needs confirmation However... ...OPTIONS STRATEGY TO TAKE ADVANTAGE OF VOLATILITY: SELL (SHORT-DATED) OTM PUTS FOR AGGRESSIVE TRADERS Sell 16Dec16 $13 put at $0.32/share (indicative) for a yield of 2.38% (54.32% annualized) FOR MORE RISK AVERSE INVESTORS Sell 21Apr17 $12 put at $0.79/share (indicative) for a yield of 5.88% (15.11% annualized)
G
by HAL9000