Aug 25, 2016
This week, we are moving past earnings to look a the overall market. To do this, we'll try a long put spread, which is on page 62 of The Options Playbook. You can always find the information online at OptionsPlaybook.com.
Today, we discuss:
- A review of last week's bull call spread on FL
- What was our forecast?
- What happened?
- Now that earnings are mostly over, let's look at the general, overall market
- Setting up a long put spread in the S&P 500
- Picking expriations: why weekly options over standard options?
- With these expriations, we are selling more time premium that we are buying
- Picking strikes: where is the SPX right now?
- Will Labor Day impact the spread?
- What was the net cost? Risk?
- Don't forget about commissions!