Looking at the markets and talking with some fellow investors and traders has brought up concerns that the stock market is going to go lower. We've had a good run up since November with a pullback in December.
So I initiated the first trade today for the Trading Account. I bought 1, 152 SPY May PUT @ 5.63.
I chose SPY because its the ETF that covers the S&P500 and thusly the market as a whole. I went with a May time frame because I don't want to get bad theta decay and start losing a lot of time value if I had gone with a February or March contract. Lastly I went with 152 because its a few dollars into the money which will give better return then going for cheap options out of the money, like say 145 or 140. You have to get bigger moves with out of the money options before you start to see good gains. With the price being 5.63 I am paying $563 for this.
I had the money to buy more options in the account but just like with my weighting of my investments, I do not want to go too heavy into one trade.
I'll be keeping a close eye on this one and talk about it during the weekly update in video form. I did want to get it out there as I bought it though.
Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.
I really appreciate your post and you explain each and every point very well. Th content is amazing, keep posting friend it will be very helpful for everyone.
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