UPDATE 4:17 8/6/2012

JUST CHECKED BROKERAGE SCREEN AND THE 143 PUTS SOLD AS A HEDGE AGAINST OUR 144 LONG PUTS EXECUTED.

WE NOW HAVE A 144/143 AUG10 $SPY DEBIT PUT SPREAD AT 3.90-3.45=.45 NET COST

MAX PROFIT ON THE .45 NET DEBIT IS NOW 122% GAIN IF SPY FINISHES BELOW 143 THIS WEEK.

ALSO THE BEAUTY OF THIS HEDGE IS THAT IF SPY RUNS TO 141-142 AREA TOMORROW, WE WILL BUY TO CLOSE THE 143 PUTS AROUND $2’ish COST AND BOOK SOME PROFITS ON THAT END AS WELL.

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UPDATE 4:07 8/6/2012

WE ALMOST TOOK OUR PROFITS TODAY, BUT TOWARDS THE END WAS LOOKING AT SELLING AUG10 143 PUTS AGAINST OUR OPEN POSITION AT 3.45 CREDIT.

IF WE HAD OPENED AT 3.45 CREDIT AGAINST OUR LONG 144 AUG10 PUTS, THE NET COST WOULD HAVE BEEN 3.90-3.45=.45 COST FOR A 144-143 SPY PUT DEBIT SPREAD

WE RAN OUT OF TIME AND NOW FORCED TO HOLD OVERNIGHT UN HEDGED.

IF THERE IS FURTHER DOWNWARD PRESSURE TOMORROW, WE WILL EITHER EXIT OR HEDGE THIS TRADE. WE MAY BE ABLE TO SELL 143 PUTS AT 3.90 CREDIT ELIMINATING ALL RISK OF LOSS IN THE POSITION AS WELL.

WILL UPDATE TOMORROW.

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TESTING HIGHS OF THE DAY HERE, IF WE GO JUST A LITTLE HIGHER, THIS WILL FILL.

ON TOP OF IT ALL, THERE IS NEGATIVE ACCUMULATOR DIVERGENCE IN THE MAJOR INDICES THIS MORNING. THEREFORE, LOOKING FOR A DITM SCALPER HERE WITH DELTA OF .95+

Order Details

Action Amount Option Price Duration Qualifiers
Buy to Open 10 Contracts SPY Aug 10 2012 144.00 Put Limit 3.90 DAY None
Est. Trade Value: $3,900.00
Est. Commission: $10.45
Funds required for this trade: $3,910.74
Quote SPY   140.12   0.77 Bid 140.11 Ask 140.12 Volume 25,924,126
SPY AUG 10 2012 144 PUT
Bid 3.90
Ask 3.96
Last 4.13
Change -0.62 [-13.05%]
Volume 176
Delta -0.95
Open Int 168
Desc SPY Aug 10 2012 144.00 Put
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