tag:blogger.com,1999:blog-973587304515257848.post6258373406316731867..comments2024-02-11T00:12:56.047-08:00Comments on IN THE MONEY TRADES: MondayAnonymoushttp://www.blogger.com/profile/02083421527404780093noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-973587304515257848.post-30302850311151038102010-01-25T10:01:41.276-08:002010-01-25T10:01:41.276-08:00The SPY call spread I was interested in at 115/116...The SPY call spread I was interested in at 115/116 was only going to be a credit of .16, so what I did was sold naked $117 calls for .18. This carries theoretical unlimited risk as opposed to a spread, but it's in line with my gut that a top was put in. Even if a top is breached, I still have another 20 S&P points buffer up to 1170. The margin required was roughly $13,000 for 20 contracts. That's a return of (.18x2000)/13000 = 2.7% for one month on what I consider a low risk/high probability bet.<br /><br />That being said, I didn't even run the probabilities on that trade, it's just a gut trade. My TOS account is not active yet until they get my signature card, can you run the probabilities of the $117 calls expiring worthless with Friday's vol versus today so I can see the differences?Jason Haashttps://www.blogger.com/profile/08138027111150684908noreply@blogger.com