I have three calls... today, my calls are way out of the money, the September 1000 calls, I bought them for insurance, not to profit from a big rally, since at the time, my average entry price was 1013.50... I have orders placed to buy three Sept 960 calls, these will be paid for by the profit from the sell off... the worst I can do at this point is break even or make a few bucks, but I stand to make a ton if these markets continue lower into September... this is my trade, a position trade, not to trade for 10 or 20 points... I'm willing to spend my recent 50 point profit to buy insurance... once all the short positions are protected, I can let the market do whatever it wants and I'll be fine... I can't get hurt this way... realize my use of options in this trade is for insurance, not to trade itself... I have no exit price unless I see the SP's sell down to 850 or so... otherwise, this is a time trade, I'll wait until around Labor Day and close out the short positions for the rally into September expiration, if my scenario materializes.....
GZ |
