[mjgill1]

I guess Tom is no longer maintaining his membership. You should be able to get him on Twitter. Maybe you have to follow him in order to message him?

[mjgill1]

SPY ETF HEDGE TRADES AND INTRADAY MARKET UPDATES FOR DEC 29 2020

Understand everything except how you derived the 3730 support level. What do you see in the 5 day 30 minute chart that I am missing.

Thanks,

[mjgill1]

Teddi,
In your response illustrating the pro’s and cons of SPX vs SPY you stated “Several times in market corrections I was cashed out at expiration on my SPX position for a large loss. There is no choice. You are cashed out at expiration.”

Is that because you were unable to roll out or down your position? All the reading I have done on your site, you really hammer on rolling out, down and out and reducing # of contracts as you go if you don’t want to be assigned. I understand that the SPX options have no assignment, only cash out, but can’t they be rolled? Was it some other circumstance where you were unable to tend to the position (Good Landlord) and it happened automatically? If you had sold 10 contracts at say the 3475 strike and got assigned, isn’t that $3,475,000.00? That would be so devastating that I don’t think recovery would be possible. Am I missing something?
Thanks,
Mike

[mjgill1]

Interesting. I would be interested in hearing what the rescue strategies are since you never own stock. You can’t do covered calls and get exercised so are you limited to just rolling out, down or how do you do it? Sorry, I’m new and interested in learning everything I can.

Next question. When I put in ^spx into my options chain on my Eoption trading platform it only gives monthly option choices. What are you supposed to enter there? There are a lot of choices when the drop down appears.

Are you letting these expire, or are they closed for a few pennies? Do you simply open a new position based on the criteria posted above every Friday like clockwork? Seems like an amazing strategy.

Thank you for posting this. You posted it today. Were the drops in Sept. and the end of Oct. where you almost had to roll out?

[mjgill1]

Hi Tom,
You illustrated why you only sell spreads on the SPX, but you didn’t say why you don’t do SPY. Can you explain a bit more of your issue with SPY? I was under the impression that any trades done in less time than a year go into your income basket, so to speak. I was also under the impression that trades done on equities held over a year would be capital gains. Knowing the task masters at the IRS it’s likely more complicated…
Also, did you start another thread on this?

Thanks,

[mjgill1]

So on a day like today, and yesterday for that matter, we are way above the anticipated support and resistance levels. What do I do on a day like today? Just watch for signals and act quickly?

Thanks,

[mjgill1]

I always knew that there was way more knowledge and experience being applied to this strategy. It’s not just follow the lines lol. That is a great article! It does seem complicated at first, but after going through it for a few minutes, it makes good sense. There have been days when I watch your trading and wonder “how does she just sit there for so long without selling her options?” Now I understand that you are waiting for the index to work its way to the next expected support or resistance level while just monitoring the move. All the while watching the price of your options increasing which is awesome. This has got to be one of the best articles on this subject I have read since starting with you back in June. Thank you so much!

[mjgill1]

Hi Teddi,
This morning in the Spy ETF update you said that you will look for opportunity to buy puts in the first 10 minutes if the open is above 3380. How did you choose the 3380 level? Does it have to do with where it falls between support and resistance? I think I understand why you say if it opens lower like near 3360, you will look for call buying opportunities but the 3380 number is getting me.

Thanks,

[mjgill1]

Today is 10/27. Support is 3400 and 3375 with the new resistance level being 3450. It’s 1007 NY time and the S&P has been bouncing around the 3400 mark. The Williams %R shows overbought. Is there an article or reference that you have to help be better understand the relationship between the Willams and support/resistance levels? Or, is it not that important?

Thanks,

[mjgill1]

You are a sweetheart! Thanks a bunch!

[mjgill1]

Thanks all.

[mjgill1]

That is odd. Maybe Teddi can fix that or has it set that way for a particular reason. I we’ll see when she gets to it. Thanks for trying.

[mjgill1]

Did you forget to include the links?

[mjgill1]

That would be great. I looked but couldn’t find anything.

Thanks,

[mjgill1]

Well, I decided to play it safe and bought to close the puts today for .70 on a limit order. I can’t say what will happen to the stock over the next 4 days until expiration, but this locks in $725.00 of profit and releases my capital. The original profit if left to expiration would have been $450. Rolling down and out a bit increased profit and prevented assignment. I may have waited a day or two to close this, but am in the process of looking at a different broker that does not take me to the cleaners on every trade like IBR has been. Now I am free to move or open another trade.

Thanks Teddi for helping me to make wise self directed decisions. This has been a great learning experience.

[mjgill1]

Hey Teddi,
I know you are busy and appreciate the response. I will try to put all of the particulars in any further questions. Thanks again for the response and have a terrific weekend. I know I will, when I do as good as you do. :-)

All the best,
M

[mjgill1]

Aby1818, the bookmark checkbox is on top of the cartoon at the top left of the article. It’s there. I was able to save the article.

Teddi, That was a good article, but the one I was thinking of may not be Coke? I wish I could remember or had it saved somewhere. It was one where you rolled naked puts forward for a period of about 2 or 3 years on a significant downturn. I think it was right around 2000. Anyway, by the end of the story not only had you made a significant amount of profit on all the trades, you also ended up owning the shares of stock for nothing. It was very inspiring.

I know that aapl isn’t going anywhere any time soon. I think I did it correctly by watching the stock yesterday and buying to close when it was high and rolling forward at the lower strike price at the low end of the day. Maybe I should have just picked an acceptable amount, put in a limit order and gone to do other things? It sure was a profitable trade. If I have to roll it forward again, I may add one or two contracts. Is that a good idea?

[mjgill1]

Aby1818

So you made additional money, but have to wait and see what happens like me. If the stock rebounds, we should be able to close out early like Teddi always suggests and move on to other trades. Did you ever read the one she wrote about rolling Coke in the early 2000’s. Wow what a story! But it took a long time. I would link to it, but don’t have a clue where to find it again. I thought it was in my favorites, but it might be too old. Maybe she can drop a link. It’s a good one.

[mjgill1]

The screenshot says it’s a pro account trading over 10,000 per month and using “smart routed”. Not sure what all that entails. Do you enjoy those rates? If so, can you explain what all of that means? When I called them, they said what I wrote above.

[mjgill1]

$0.75 for 20 contracts is $15.00. As you can see in the picture I provided, I got jabbed for over $24.00 on one trade and as little as $14.78 on another. Limit orders are great when doing put credit spreads and selling naked puts, but on the spy there just isn’t time most often to do that. Not to mention what happens if you get stuck and things turn against you? Just saying. $0.25 would be a dream. IBR says they do not favor any clients over others. I was told I could have a billion dollars in the account and trade 100,000 contracts a month and it wouldn’t matter. I want to cry horse hockey on that as it’s patently obvious that we are not paying the same. I am really looking forward to hearing from Teddi on this.

[mjgill1]

Do you trade spy intraday with the live market feeds etc on Fidelity?

[mjgill1]

Thanks for that. I kind of thought that and have heard that it’s rare. Just the same, tomorrow is the expiration day so why take a chance if you don’t want to be assigned, right?

[mjgill1]

They said that they charge .65 per contract also. They say that the rest of the fees are exchange fees. One guy told me that if you use limit instead of market you’ll save on the fees. Well, you try and do limit orders on the spy. Ha! Maybe set up a limit order to sell, but what if it turns around on you? Then you have to cancel your order and quick do a market order to sell? There are no rules or instructions that are worth a s***. About ready to take my ball and go home LOL.

[mjgill1]

I don’t have enough experience to wait. I would be scared to be assigned if I waited till tomorrow. I didn’t really want to be assigned at this time. If assignment happens, does it happen at the end of the expiration day? It’s frustrating to not know the rules, or if there are any rules. I feel like a chum fish swimming in a shark tank lol.

[mjgill1]

Well ended up buying to close the 5 113.75 strike naked puts today for 2.75 when aapl was high, then sold the Oct 2nd 108.75 strike for $4.00 when it was low.

– $925 to close, +$2000 to sell at the new strike and Expiration. Net +$1075.

W’ll see how it goes…

[Author]

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