SPDR S&P 500 (SPY)

[2bit-nothing]

YRT1,

Last Friday, I was uncertain as to what direction the market would take and I tried something I seldom try before. Like NM, I played both sides. 1 OEX 495 put contract and 1 OEX 500 call contract. Monday gapped up and I sold the put immediately. To cut the story short, I lost 200 on the Put and gained 500 on the Call. I am now all in cash and waiting for the pullback to go long again. But I was lucky because it gapped on Monday if it were a mediocre day I would have lost money both ways. I never put stops on option plays because of the volatility. Rather, as soon as you realise you are in the wrong direction get out and reverse. Think of it this way, average down on the wrong trend will keep you loosing, reversing right away will recover your loss or more. OR if in doubt stay out.

good luck

2bit