$SPY options – an 11% gain for a day

DAY-TRADING THE FOOL’S GAME:

At the time of the Tweet below, the weekly SPY ITM 265 call was up about 31%, basically the peak of the day. It sold off somewhat into the close, finishing a mechanical day trade for 11.3% profit.

The charts below reflect a $10K buy-in on the call (54 contracts at $1.82 per contract)

THE FOOL’S GAME

END OF THE DAY UPDATE:

I say ” mechanical” above for the finish of the trade because there was no real sell signal during the day.

However, when day-trading weekly options (expiring this Friday), it often helps to also be flexible and take discretionary profits from time to time. In this case (see the chart below) there were ample opportunities to close this trade out on the jags and zig-zags on SPY while the call was at the $2300 to $2500 levels (23% to 25% levels).

There are more exciting days in the Fool’s game but today may be more indicative. A 11% gain for a day is still a 11% gain for a day.

(click on the chart for a larger view)

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