I’ve been staying out of the market (except for USO), because I think the possibility of a pullback is fairly high. However, with two days to go on the SPY Weekly 6-August options (which are showing IVs in the 30s) things started looking attractive. I created an ITM covered call position, buying SPY at 112.45 and selling 111 strike calls at 1.84. I did sequential orders, with the SPY buy being a market order, and then a limit order to sell the calls. SPY did a nice little up move after I bought the stock, I was going to put in an order at 1.74, but after a few minutes I was able to get a fill at 1.84. Break even on this position is SPY at 110.61, best case profit is 0.39 per share (0.35%) which will occur if SPY closes at 111 or above tomorrow.
Two days to go
First posted on
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