Hey…everyone reading this post. I would like to continue my SPY etf series. this picture is an SPY (s&p500 option or google, I think) on a extremely down day for the market (8/23/19–Stock market down over 600 points.) as you can see this option is up over 500% with the opening price being 1.21 and the previous close of only 79 cents. The days range of 0.29 to 5.22! WOW what a increase of value. If you as a trader can at least buy a call or put option at the right time you can make a tremendous amount of money within a day and this option (PUT option of course) increased a great amount on a down day for the stock market.
This is the same options chain for the SPY ETF, but with a lower price on the option chain. As you can see the open for this option is only 20 cents and previous close was 10 cents but the range was between 2 cents and a whooping $1.22. keep in mind this is a PUT option on a down day on the stock market…with the proper tools you can see the trends of where the stock or etf can possibility go..these tools can help you in the long run and I will discuss some of these tools at a later date. I know one tool is the Macd, the bollinger bands, the previous close, and the RSI. Also you can use the VIX etf to track the volitility of the over all market. Some currencies like the EUR/USD, AUD/JPY, and the USD index you can use to trade possible movements of the market. It is also important to use apps like tradingview for the 15 min to 4 hour time frames when trading. I will discuss this more in detail as time goes by..now on to the next picture.
Once again you have an option for the SPY that has tremendous movement this option started at 5 cents and increased to 28 cents by mid-day and the days rangs is 1 cent to 75 cents, a whooping 7,000 percent return…WOW the previous close was only 3 cents. and this option is a put on down day…if you where a smart day trader..you would have made money instead of losing money like most people did.
This picture is a great example of a awesome trade with great returns. this option is a SPY option once again and you know SPY options have high volume so there are plenty of buyers and sellers for the option. As you can see the open was only 33 cents, the previous close was 43 cents and the day range was from 10 cents to $4.30..so..if 1 option contract is for 100 shares and each share is 10 cents. the total would be $10 for one contract, if you brought one $10 contract you could have sold that same contract for a whooping $430! in one day, if you sold the option at the peak of the trading day..and remember I took this picture a mid-day, not at the end of the day. The volume for this option was low, in comparison to other option for the SPY, but none the less the returns where great….I will have more on the way…Stay Tuned