Here's a really good example of time decay that happens every day with options. This option expires on Friday Sept 20 and is currently OTM:
The S&P 500 bounced back by 4.0% following a stunning decline of 4.2% last week. The stock market is super volatile.
I have a small position in SPY cash secured puts with a strike price of $545. It's quite ITM so I think I'll let it ride it out until Friday.
Not much to report. Stocks were mostly flat WoW, except for Bitcoin.
What a wild ride the past 3 weeks has been. Finally on Friday, Fed Chair Powell confirms that an interest rate cut is coming in September. Question on everyone's mind is now: By how much? Most are expecting 25 bps but there's a growing group of investors who think we need 50 bps, even 75 bps. We'll find out in less than 4 weeks.
I had a covered call position with QQQ opened a few weeks ago with a strike price of $480. For most of the time it was out of the money but last week the stock jumped to the mid $470's so I decided to buy back to close a few days before the expiry date, which is today. I pocketed a couple hundred dollars by closing my position early but gave up some money since the option still had time value.
Strong performance from the Nasdaq helped the stock market recover from its losses. Quick post this week due to vacation!
Overall portfolio fell 2.5% week-over-week which was a lot less than what I would have expected on Monday.
The Japanese government raised interest rates by 25 bps which shocked the market and sent domestic Japanese shares down 12% and affected U.S. stocks throughout Monday. However, most of the losses were trimmed by the end of the week as investors realized that the U.S. economy remains quite strong still. There was a lot of chatter about an economic collapse on Monday but that fear seems to be overblown.