Entering text into the input field will update the search result below

Winner: 22.22% Gain On SPY Calls

Sep. 26, 2020 11:36 AM ETSPDR® S&P 500 ETF Trust (SPY)
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.


  • Bought the SPY 20NOV20 320 calls options at $16.74 on Sep 21.
  • Sold the calls on Sep 22 at $20.46 for a gain of 22.22% on the trade.
  • 2% portfolio allocation.

I bought the calls when SPY closed below the Lower Limit Level of the Linear Regression Model, and the price bar formed a hammer bottom. The next day SPY rallied 1.02% but closed right at the Lower Limit Line - which was resistance. 

I sold my calls for a quick one-day 22% gain on the trade, fearing a reversal at resistance the next day - and that's exactly what happened - SPY dropped 2.32% on Sep 23. 

SPY is now in the process of hammering out a bottom, so my next trade in SPY will most likely be to buy new call options. 

The Options Trader is a great forum for investors interested in generating over-sized returns over short time periods trading leveraged options. Click here to start a Free 14-Day Trial.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.