Trading Edge 2020 Portfolio -Trade #8- SPY - Time to Short
Ticker: SPY
Position:
~ April 17th expiry
~ $255 Strike Puts
~ Cost 12.32/ Contract
~ Delta = 0.41
~ Break even at expiry = $242.68
~ Run 1x contract
~ Total cost = $1,232 (there may be variance in price)
Profit/ Exit:
~ Initial target is a gap fill around $230, at this point i will roll the position to remove some of the risk and retain exposure to a further fall, which i believe is likely.
~ Due to the insane implied volatility at press time, a stop is likely to be triggered prematurely, therefore, i will not be running a stop on this particular position, and will instead look at rolling to a later date, should the expected move not occur by expiration.
Rationale:
~ For a multitude of reason i expect further downside to persist, largely driven from a macro perspective, i.e. Covid19, supply chain disruptions, lockdowns affecting production etc.
~ Technically, i favor the setup due to the move to the 21 ema, which during a bear market, often serves as a good entry point for shorts.
~ We are currently at the 38.2% fib retracement, although i think a move to the 50% is also on the cards, if anything i would look at entering an additional short position at that point, so this position may be considered "tranche 1" of that overall position.
-TradingEdge
Position:
~ April 17th expiry
~ $255 Strike Puts
~ Cost 12.32/ Contract
~ Delta = 0.41
~ Break even at expiry = $242.68
~ Run 1x contract
~ Total cost = $1,232 (there may be variance in price)
Profit/ Exit:
~ Initial target is a gap fill around $230, at this point i will roll the position to remove some of the risk and retain exposure to a further fall, which i believe is likely.
~ Due to the insane implied volatility at press time, a stop is likely to be triggered prematurely, therefore, i will not be running a stop on this particular position, and will instead look at rolling to a later date, should the expected move not occur by expiration.
Rationale:
~ For a multitude of reason i expect further downside to persist, largely driven from a macro perspective, i.e. Covid19, supply chain disruptions, lockdowns affecting production etc.
~ Technically, i favor the setup due to the move to the 21 ema, which during a bear market, often serves as a good entry point for shorts.
~ We are currently at the 38.2% fib retracement, although i think a move to the 50% is also on the cards, if anything i would look at entering an additional short position at that point, so this position may be considered "tranche 1" of that overall position.
-TradingEdge
Nota
255 Strike Put filled at $13.00/ Contract
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.