Today is Friday, there was two news events that happened at today. I opened my positions at 6:50 AM PST based on the fact that price did not seem to go any lower than the premarket and also there was over 1 billion positive delta. So unless that delta went away price wouldn’t go lower than 15-20 strikes away from it until it was much lower. Right now i’m hoping that its not a range day as price has tried to go past the orange dotted line which is the SD1 for my VWAP on the US500. If it keeps failing that means price will be in range between the dotted orange lines until it goes past one of them and holds outside of it. I sold 2 6885/6880 Put contracts for $0.65. Looking to close them for $0.20 or $0.10 depending on if we break past the SD1 in the next hour.
Update – 7:45 AM PST – Price finally broke past the SD 1 so now if it holds outside of this level. I will aim to close at $0.10 however, if it goes back, I’ll try to close at $0.20 or half of the premium whichever comes first.
Update – 8:25 AM PST – I closed my position for $0.25 as price seemed to want to go back to SD1. I also realized that we tapped yesterdays high before coming down so unless price could go past it I do see a resistance there. Better to take profit than to lose it.