Tuesday, November 3, 2009

SPY straddle spreads

I never did look at options prices over this past weekend. I changed my mind about laying out cash to play a straddle. I think I was itching to put back on another play because I closed out the XLE and SLV calls spreads I had on for what felt like an eternity. The addict in me wanted some new action. However, thankfully this time I didn't just put something on for the hell of it. I still currently favor selling naked puts on dividend paying stocks that I would like to own.

I'm also still naked on $45 XLE Jan and Mar puts so I want to root for the stock to not go down so I don't lose any money there, but I also don't want it to run up because I'll just second guess myself for selling out if it does so. Also, when I closed the SLV $15-$20 call spread, I sold all the $15's at my ask price. On the $20's, I had an order in for .25 to split the bxa of .20x.30. Only 1 contract got filled so I've still got 24 naked $20 strike price calls and SLV is up .80 today. I was supposed to get on yesterday and decide if I was going to try and middle the bxa again or just pay the ask and be done. The impetus for not just paying the ask when I closed out the spread was just being greedy, it might end up costing me now, we'll see.

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