Pre Market SEP 27, 2024

One thing about reporting in the Pre Market is that it is still Pre Market. The bell has not rung and the markets aren’t open. Anything can change on a dime, but to be honest that already happens during the day as well. Right now all is pretty quite here in the Pre

CAT, right now we are still active with it
Yesterday I mentioned we needed CAT to stay above 390 here for any new plays. These are the plays we initiated yesterday

1st: Blind Calls for the 400 Strike and they closed up 60.53%. Yes in one day. That trade on our 1-5 risk scale is a 4

2nd: We then own the 392.5 / 400’s
We are ITM on the 400 Short Strike offsetting the cost on the loss of the long by 6 to 1
If price advances that will reverse and go the other way making us ITM to the long creating a small debit to the short side as expected.
This trade alone is exactly why we invest with Verticals…. It’s a 2 on our risk scale

3rd: We own Blind Calls at the 390 for OCT 11, 2024. This one is part of what I spoke about yesterday, premiums are rising rapidly.
The EXP on this trade is one week sooner than our others on OCT 18, 2024
Theta will kick in quicker on it but the Strike is 10 points lower. It’s a 4 on our risk scale

4th:. It is the 380 / 385. We will close this one this morning or possibly drop the short strike ONLY IF PRICE IS ADVANCING and then ride the long. It’s a 2 on the risk scale, if we drop the short and ride the long it becomes a 4. This trade should of been closed yesterday for sure, it snuck by us as some of the orders were filled a few were left unfilled as CAT’s price advanced. That can happen, not often, but it can just like slippage to the downside. That’s important to note since price has now surpassed the 385 short strike, there’s no reason at all for us to hold on to it.

Those are just the new ones, we still have a couple of others from last week.

S+P Support is steady at 5,710……
Time to grind

The Options Coach