Hi guys, sorry for not being clear, yes my intention was to mean that the PUTs are cash secured, so it is okay if SPY goes down to 150. I am okay to pick up SPY at 250. The reason I want 50% short PUTs and 50% cash is because I am not sure if markets will really go below 250, so the PUTs give me some extra income.
However, all the above now seems irrelevant, markets shot up yesterday like crazy and I sold only 1 PUT, I should have sold atleast 4. Now the PUT price has come down from 8.5 to 6.7.
However, all the above now seems irrelevant, markets shot up yesterday like crazy and I sold only 1 PUT, I should have sold atleast 4. Now the PUT price has come down from 8.5 to 6.7.