Well, not only did SPY not stop at 400, it just went straight through without any fuss. Amazing! Although don’t be surprised if it retraces and retests 400 from the top side, this often happens. I will be monitoring it closely and if I see any danger signs I will post here.
But its all good news for ITM – our option is now worth $182, and 80% increase on our starting price. Our portfolio, which started at $10,000 six months ago is now worth $18,2000. Nice.
If you are following the Rollup or Turbo ITM strategies, then it is almost time to sell our current ITM option and buy 2 others less ITM. We could afford 2 * March 2022 strike 325 options, but we are paying for a time value above 1% which we don’t want to do.
We have 2 choices:
- We can afford the September 2021 320 option which has a time value of < 1%. The bid/ask is 89.29/89.87 so 2 options will cost us $17,920. OR
- We can wait until we can afford 2 of the March 2022 300 options which have a time value of 1%.
Happy Trading!
