Friday, June 21, 2013
Bought SPY Put again
Yesterday SPY broke down the support level around $160 and closed at this lower low with extremely high volume. The market used the FED new about ending QE's as an excuse. Considering the intermaket analysis definitely showed the bearishness of the market, I need to start my bearish trade as indicated in my previous post.
So this morning at my usual trading hour around 8:00AM PDT, I purchased a few SPY DEC Puts with Delta raning from 0.55 to 0.67, depnding on my risk tolerances for my accounts. Since this is not ideal point to start the bearish directional trades, I reserved soem buying power to add more positions in case the market rebounce. The ideal point for me is the resistance level of $160 right now.
My stop conditions are similar to the prior bearish trade on SPY with the stop price adjusted to the lower high of $166.
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