January Credit Spread Sells
This is coming out a little late as these Options were sold last week but here were my sells going into February:
PM - $86 Call
HP - $70 Call
OII - $55 Call
CLX - $105 Put
HSY - $100 Put
Puts vs. Calls
Obviously I was a little Call heavy this month. I tend to like Calls though as people seem to react faster to bad news then good. This is only my observation and doesn't have any 'hard' fact or numbers behind it. Along with that I expected the market to drop (at first) due to the falling gas prices and then pick itself back up after Feb. From the strike-through you can tell that one of my plays has already gone bad. It hurts the most when they go back on the first week but this is why I've learned to always have stop loss orders in. For now 5 trades will be my maximum. This gives me some diversification to protect me from one or two bad trades a month. HSY was the repair sold to balance the SSYS loss.
*The prices posted are the paying arm of the spread, all with expirations of 20 Feb.
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