Hello …Welcome…This is Part 2 of the Trading S&P 500 blog series. If you need to see part 1, Please do so. In this post I will continue to show you the examples of price swings and value increases of the SPY (s&p 500 etf) these examples are not my personal trading positions, even though I have made money using similar methods…by trading same day to 2 day options. In this post I will show three examples.
WOW!! if you look closely you can sell the HUGE price increase for this option. Which expired the same day. This particular option is from SPX index fund options. As you can see the opening price was only $1.60, but at the end of the day this same option was worth a wooping $14! Think about that! Check out the difference between the bid and ask! Looking at the volume is very important when making trades a high volume over open interest when looking at the option table is key to seeing price movements.
Ok…Photo number 2 is a smaller move. This option is from the SPY and has the same day expiration date. If you look at the opening price of 0.15 cents and at the end of the day the final price was $1.36, this option went up over 6 times! If you brought the option at it’s lowest point..at 0.13 cents, the option would have returned over 10 times! Wow. The volume was over the open interest at 56k vs 20k for open interest and the ask is higher than the bid. Stay tuned for part 3, where I will show you even more results from other stocks, etfs, and index funds. If you know when to trade and how to trade these options, you can make a tremendous amount of money. But remember these trades are VERY risky and require practice to master, you can still loose money even with great practice.
Now this option is also crazy. Here you have an option from the SPY, that opened at only .02..ok only 2 cents! and the price of the option jumped to almost 0.40 cents…Almost 20 times it’s value. keep in mind the the option expires on the same day, so the trade is very risky!, but at the same time a 2000% increase in price in one day is crazy. The volume is higher than the open interest for the option..of course. When you take the time to safely place trades with an exit plan you can really catch great trades with great value increases. Stay tuned for part 3.