Replies to post #377129 on SPDR S&P 500 (SPY)

[Romiman]

Nice I got lucky and got some 10/24 $430 puts when it was at $432 for 2.93, prolly holding these till eod tomorrow. I’m up 101% right now but will most likely sell 1/2 and ride the free ones until Monday. I think we’re headed lower.

[trendzone]

In a whipsawing market a strangle is not a bad game plan, in a big swing in one direction or the other,your back is covered, like you did selling one leg of it, and walked away with profits, always have to close one leg of it, when that big swing happens, and not get greedy, if things bounce and then go flat, that's when the options MM criminals bleed you dry.

[nowwhat2]

I don't understand strangles (haven't researched 'em much tho)
On the surface they semm like a zero-sim game
If one side goes up then the other goes down - Presumedly by an equal amount.
Seems like STILL has to make a directional call - at some point or another.

You say that if you weren't busy you would've closed out your call at a better than worthless price.
Altho, it could have worked out that holding onto the call and closing out the put was the thing to do (had the mkt rebounded, which it didn't)
Did you KNOW that the mkt was going to continue down ?

Plus (one might ask) why the different strikes ?

No NEED to respond tho - since I understand it's complex - I am just puzzling out loud.


But thanks.