I charted the S&P 500 ($SPX) after the markets closed on Friday, 6/11/10, after it finished the week at 1,091.60.
2 thoughts on “S&P 500 Chart – June 11, 2010”
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Investing in Stocks Through Options
Investing in Stocks Through Options
I charted the S&P 500 ($SPX) after the markets closed on Friday, 6/11/10, after it finished the week at 1,091.60.
Comments are closed.
Alex,
I’ve been following you posts and enjoy the read. I believe two posts ago you asked for comments on your option “thinking”. You and I both know nothing works 100%, the key in this game is to manage your money. You always start your position by selling puts on a stock you feel is at a good support level, why not sell half puts at that level and go long the stock for the other half? If the stock advances, you sell the stock at a level you feel is appropiate. If the stock declines, you are assigned the puts and you sell calls on the entire position. To me this gives you more upside potential. You can always sell lower puts next month and turn it into a stangle.
Just one guy’s opinion.
Brian
Brian, I’ve considered something similar to that. Instead of just going long I’ve thought of selling ITM puts on part of the position so I still get the advantage of some time value, but also increase my potential upside. That’s essentially the same as selling OTM covered calls, so I could do it when I see a stock already bouncing off support.