Day Trading Options Strategy [Here Is My SPY Option Trade]

The day trading options strategy I am using today – sell SPY bullish put spread. I sold an at the money weekly bullish put spread on SPY Try our research for $29 http://www.oneoption.com/research-offer

My day trading options strategy was used for a few reasons. Option implied volatility is elevated today and I want to sell premium because the IV is likely to decline when this drop stalls. I sold weekly options to take advantage of accelerated time decay. I used a $5 difference in the option strike prices so that the $325 puts had room to move. If the strike prices were only $1 apart the long and short options would move in tandem. I want to be able to take gains along the way and I need the spread to contract quickly on a market rally.

This is only a day trade and I will close it down today. I believe that bullish speculators have not been flushed out and that there will be more pain this week. For today, I have some bullish signs that I can see.

World Health Organization: Wuhan Coronavirus is a Pandemic

March 12, 2020

CNBC's Jim Cramer Calls For U. S. Government To Suspend Income Taxes to Combat Coronavirus

March 12, 2020