Option Strategies: SPY, QQQ& ASML
Hello everyone! Today I want to share some option strategies with you!
1.
Mark said the key thing here when it comes to put optionselling ... keep you positions "mangeable" so that if the market dumps like today (and has been since last week) you are able to:
1. Close at minimal loss, or
2. Roll without being so deep ITM that you'd be better off just taking the L versus rolling so far out for a strike not that much lower that you tie up buying power and don't really increase your risk cushion by that much, or
3. Meet (or better yet avoid) margin calls since you are not too much over-extended or over-leveraged
2.
The price action on $S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ Trust-ETF(QQQ)$ today has been wild. Was looking at taking a pre-earnings trade on $ASML Holding NV(ASML)$ , but not sure now with it being OPEX week and high volatility in the market.
If we do take the trade, it will be optionselling an Iron Condor Apr 19 expiration with credit spreads on both sides.
- Current price action trading right around volume point-of-control
- ASML hit an ATH around 1056 just a few weeks ago
- Expected earnings move is at ~6%
- Volume support around 862 - Gap at 779
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