4 comments

  1. Actually I sell contracts before I buy them back. These are SPY Options, so you have to multiply the Value by 100. So if I sell a SPY Option for $1.10, I’m actually selling a contract with the Value of $110. If I buy it back later for $0.80 I’ve made $30 for each contract.

  2. Hello, Lexi, I like your method of playing options, but have a couple of questions if you don’t mind. I buy and sell longer term options on the SPY, mostly calls because it always seems to be going up. What I wanted to ask is how do you choose which option to sell. Do you just pick the lowest in the money put option when it is first posted on Thursday or do you use other criteria like option pin or Max pain? And do you use charts to avoid selling put at a high? One last question Do you ever buy the option back before the last day when option is about to expire. That’s more than a couple but I intend to try your method and need all the help I can get. Thanks so much. Ed

  3. Hello Ed,

    Excuse my late Response. I didn’t see your Comment. Of course, you can ask Questions. That’s what this Blog is made for.
    First of all I do not trade any of these 3 Accounts myself. I’m a Daytrader and I trade different with my real Account. Selling SPY or ES Puts (or YM, DIA, NQ, QQQ Puts etc…) is a Long Term Strategy. I’ve started this Blog just a few weeks ago and I want to show how 3 different Accounts with a different Sizes are performing over the Years. Now to your Questions:
    I sell the nearest out of the Money Put. If SPY trades at 226.20 I sell the 226 Put. If it trades at 225.00 I sell the 225 PUT. The Markets were almost only going up since I started this Blog, so this worked pretty well. In the future if the Market goes down I will cover the PUTS with a loss of course, but I will try to only sell the next PUT at a higher Price, so this might be a Put in the Money. I guess my Trades will be red next Thursday. I will post the next Trade, so you will get an Idea what I mean.
    I don’t use Max Pain or any Technical Analysis for these Accounts. You should not blindly follow these Trades. Only if you have a very large Account. The Markets will drop big sooner or later and if your Account is too small, you might blow it up. Be careful.

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