$SPY #Options – #DayTrading Puts on a dazzling down day

SPY today dropped below its open twenty minutes into the day and never looked back.

So as day trading SPY options went, and at the risk of oversimplification, it was basically buy the blue, sell half into strength, cover on the rest on the yellow, rinse and repeat using ever lower strikes.

See the chart below for the color coding.

First – the 311 put, expiring today, for a 70% gain on one half, and a 50% gain on the second half.

Second – the 309 put, expiring today, for a 100% gain on both halves.

Third – the 305 put, expiring today, for a 50% gain on one half, and a breakeven on the second half.

This is what one always wants day trading options, a trending day down.

FIRST ENTRY AND EXIT

SECOND ENTRY AND EXIT

THIRD ENTRY AND EXIT

AND FOR GOOD MEASURE THERE WAS THIS EXCHANGE TODAY:

(click on the chart for a larger view)

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