Knights of The Round Table

[kraigger23]

My Play yesterday at close was Wed 2 day SPX 2440 puts. My entry would have been 5.00 and I would have purchased 2.
A $1,000 investment which is high risk for 2 days

At Open they were worth 14.75 and I could have dumped them at 14.45 with no problem which I would have. A 9.45 profit times 2 or $1,890.00 profit for an over night ride.

Less than 5 minutes into the open they dropped back to 11.00, which is what I call the premium Burn. Market makers are not truly sure what will happen at open so them lean to the safe side. The reason an immediate profit taking is sometimes truly important.

At the same time I watched the 2440 calls and they went from 3.20 to 3.70 on a .5 point move so they also didn't get anything but premium burn.

The reason you never chase at open.


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