SPX 500 Live Option Trade..4.
Ha Ha Ha. We tried to be smart ., and buy the call on the next day inspite of coming in buy on 11th June. But Market is supreme., it opened with a gap up. Plus we tried to be extra smart and said will enter the call after the first 15 mins of market opening. So the call which we could have bought at open at around 102-105 range ., we had to buy after 15 minutes at 115-120 range.
Inspite of this late entry., the call touched a high of 156 ., achieving our target of 40 pts from 100 entry ( as mentioned in yesterdays note ., check live option trade...3. note below ) and doing some more. Thus giving us 40 points.
We strayed from our original strategy., which states that in the last 15 minutes if its expected to close at or above our entry level then its a buy. Inspite of clear strategy rules., we used our brains and tried to delay entry ., by using the last 10 minutes fast move in SPX as an excuse to not enter the trade. Lesson learnt., henceforth will not repeat this mistake.
Either way., no matter where we entered the market gave us 40 points. One could keep a trailing stop or switch to cheaper calls., to take advantage of a trending market. However., we have kept a target of 50 % of the call value as our general benchmark for profit booking.
So June monthly SPX 500 expiry also., we made profits. We exit. However we will continue to track this trade., if position still kept ., then stop profit would be at cost price of 115-120.
SPX 500 Live Option Trade...3...
Finally., on 11th June we get a proper closing in the 5300 call June monthly expiry. As we see the days high is the same as the days close. And looking at the intraday 5 min SPX spot and ES charts., it seems market just shot up in the last 10 minutes of the market close., ES ( SPX 500 futures ) rose from 5370 to 5385.
Thus ., most likely the 5300 call also rose dramatically in the last 10 minutes. Now its a personal call., whether to take this trade or not as it happened in the very last minute. Our buy level was at a closing price above 95.,usually we enter when its the last 5-15 minutes of the spot trading day .
We will err on the side of caution., and wait for a breakout today above yesterdays high and then enter long., after the first 15 minutes of the market open.
Target would be approximate 40 points on this call. Stop loss would be 30 points from the designated entry price of 95. Today we will buy ., if it stays above 100 ( 99 rounded off to 100 ) after the first 15 minutes of the market.
End of update.
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SPX 500 live option trade...2...
Edited on 11 june 2024.
UPDATED CHART OF 5300 call SPX monthly expiry contract is given above. Once again., the call did not close above our USD 95 level. The breakout level remains the same. And a few days of trading are left in this expiry .
USD 95 on a closing basis is a buy in 5300 call.
End of Update.
SPX 500 LIVE Option Trade dt 8 june 2024 ...1...
It was clearly spelled out on 29th may, that if and only if the SPX 5300 call closes above USD 95 then its a buy.
Link to 29th May 2024 SPX Live options trade article :
In the picture shown above., one can see that on 5th june the option made a high of 92 and closed at 90. ( rounded off ) ., then on 6th june it made a high of 95 and closed at 85., and then again on 7th june it made a high of 98 .,but closed at 76.
The option had not closed above our 95 level., even though it manged to cross it once. The breakout level for the expiry week., remains the same., closing above 95 is a buy.
( there is a probability that if there is a sharp upmove., then during intraday move it will go up substantially above our 95 level. we have systems to trade these intraday breakout., however we will leave that for another time )
Closing wise., SPX 5300 call above USD 95 is a buy.
P.s: These updates that I write are for educational purpose only., and to maintain a dated log for my personal consumption. It is not an advert to trade or act in the real markets. I am not a registered broker nor a registered advisor.