Option Strategies: .SPX, HD& TGT
Hello everyone! Today I want to share some option strategies with you!
1.
STO $S&P 500(.SPX)$ call credit spread - Nov 14 exp 4515/4520 strikes. Damn ... should have waited ... would have gotten more premium. Oh well ... such is life.
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2.
Closed out our $Home Depot(HD)$ Dec 15 exp 260/250 put credit spread for profit.
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3.
Closed this $S&P 500(.SPX)$ trade. Buy-to-close at 0.10. Was in a meeting and missed it at 0.05. Taking the risk off the table in case SPX pumps into the close.
4.
Took an earnings-play trade on $Target(TGT)$ . Sold-to-open the Dec 15 exp 90/80 put credit spread. The 85 level is the March 2020 Covid low.
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5.
Just like they do in the military and in corporate business, let's do an After Action Review to learn what went right, went wrong, and what we could do better. We will look at our optionsTrading trades on $S&P 500(.SPX)$ today.
What went right: - We closed the trades for profit and to remove risk off the table, and we technically "won" on the trades. That's about all that went right.
What went wrong: Plenty! - First, we took the trade way too early and should have waited for the slow grinding upwards move to establish a flatline before selling the call credit spreads. - Second, the risk/reward was horrible. We could have taken higher strikes to reduce our risk or could have captured a lot more premium for the same strikes if we had waited to take the trade.
What we could have done better: - Wait to take the trade if the directional move (price action) looks strong. - Sell put credit spreads against the upwards move versus selling call credit spreads into the move.
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