I decided to mix these up a bit as far as expiration, I'd usually want at least 6 weeks until expiration, but being I think this is a head fake move, I can entertain the possibility of weekly and February monthly calls so I decided to split them up a bit. I personally would not recommend so many market directional positions, but I kind of just want to see what the performance looks like being a head fake move (or highly probable head fake move).
This is what I decided to go with.
SPY Feb 7th $175 Calls (weekly)
SPY March (22nd) $175 Calls (monthly)
IWM February (22nd) $109 Calls (monthly)
IWM March (22nd) $109 Calls (monthly)
QQQ March (22nd) $85 Calls (monthly)
I've split up the position size between each of these so the main risk here is overcorrection between SPY, IWM and QQQ.
If I had to choose one, I'd probably take the IWM March $109 Calls.
Is interest rates about to start going up?
-
Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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