Define the risk

One of the great aspects to being on Twitter is the breadth of experience and knowledge from folks at your finger tips. What flows from that are great questions on a wide variety of topics – just so awesome to be a part of it.

I have noticed a heightened sense of awareness today to the where the SPY (SPDRs S&P 500 Trust Series ETF) is trading. I ultimately elected to play the expected bounce near 129.51 by clearly defining my risk through the purchase of the Weekly Call option for the 130 strike at .94 cents. With this trade, my risk is clearly defined (of course I can stop it out at any time before zero).

For those that asked me questions regarding this, this is certainly one way to do it. For a trade where I want to know my exact risk – this is my choice.

Happy Trading.