Rocket Friday Morning SPY & UBER Update 11-06-20
Friday Update - November 6th, 2020
We have 2 active options trades that expire today.
We have an SPY put spread from $349 to $345.
The SPY is trading at $347.70 as of 7:25 am EST, so we have about $1.30 of intrinsic value right now. The SPY traded as low as $345.77 last night. We have over 2 hours until the open, with non-farm payrolls still to come this morning, so lots of volatility still possible before 9:30 am.
We also have an UBER call spread from $42.50 to $44.00.
Uber is trading at $41.25 - so we is out of the money by about $1.25.
We may see some fast markets today, as we have non-farm payrolls at 8:30 am EST, along with election results still coming in. I don't expect the market to fall apart today, but I do expect some swings as we move through the day.
SPY $349 - $345 put spread trade:
If we get any good negative action in the SPY then we will look to close out our SPY trade - don't wait for an update if we get a good move down in the market, just close out the SPY put spread at whatever price you're comfortable with. I don't want you to feel the need to wait for an update - manage this options trade and look for the opportunity to exit with a nice profit if given that chance. I will send out updates when I make any moves, but we could get some big swings on the open; don't wait for me if give the chance to lock in a nice profit.
Some info on how our SPY trade is priced: We have a $4 range in the SPY for value, from $349 to $345, every point is worth $100 for our contract. If the SPY is trading at $347, our spread would be worth $2.00 or $200 per contract. As the SPY goes below $347, the value of our spread will rise above $2. And as the SPY trades above $347 our spread drops to below $2 in value. Our breakeven in this trade is the SPY closing at $347.75 today if we hold through the close, as we paid $1.25 to initiate this trade.
Uber $42.50 - $44.00 trade:
Uber came out with earnings last night; they lost $0.62 vs a loss of $0.65 expected with revenue of $3.13 billion vs. $3.20 billion expected. Let Uber open and see how it trades, this may be a complete loss as Uber needs to close above $42.50 today to realize any value. We will look to exit this trade this morning if we get a move higher in Uber at all.
We have an SPY put spread from $349 to $345.
The SPY is trading at $347.70 as of 7:25 am EST, so we have about $1.30 of intrinsic value right now. The SPY traded as low as $345.77 last night. We have over 2 hours until the open, with non-farm payrolls still to come this morning, so lots of volatility still possible before 9:30 am.
We also have an UBER call spread from $42.50 to $44.00.
Uber is trading at $41.25 - so we is out of the money by about $1.25.
We may see some fast markets today, as we have non-farm payrolls at 8:30 am EST, along with election results still coming in. I don't expect the market to fall apart today, but I do expect some swings as we move through the day.
SPY $349 - $345 put spread trade:
If we get any good negative action in the SPY then we will look to close out our SPY trade - don't wait for an update if we get a good move down in the market, just close out the SPY put spread at whatever price you're comfortable with. I don't want you to feel the need to wait for an update - manage this options trade and look for the opportunity to exit with a nice profit if given that chance. I will send out updates when I make any moves, but we could get some big swings on the open; don't wait for me if give the chance to lock in a nice profit.
Some info on how our SPY trade is priced: We have a $4 range in the SPY for value, from $349 to $345, every point is worth $100 for our contract. If the SPY is trading at $347, our spread would be worth $2.00 or $200 per contract. As the SPY goes below $347, the value of our spread will rise above $2. And as the SPY trades above $347 our spread drops to below $2 in value. Our breakeven in this trade is the SPY closing at $347.75 today if we hold through the close, as we paid $1.25 to initiate this trade.
Uber $42.50 - $44.00 trade:
Uber came out with earnings last night; they lost $0.62 vs a loss of $0.65 expected with revenue of $3.13 billion vs. $3.20 billion expected. Let Uber open and see how it trades, this may be a complete loss as Uber needs to close above $42.50 today to realize any value. We will look to exit this trade this morning if we get a move higher in Uber at all.
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