Vertical debit spread on SPY

29 juin 2017

I don't like debit spreads, but sometimes they give a nice risk reward, SPY have a Implied volatility rank of 1.4 at the time of this trade. This is basically a 50/50 trade but we are risking less than the potential max profit.

The trade:

Buy 242 Put
Sell 240 Put

Paid 0.65 per contract

I did 10 contracts so the max profit is $1,350 and my max loss is $650. This will give me additional negative delta for the portfolio.

17 juil. 2017

Transaction en cours

This trade is going against us and doesn't look like we are going to make it back. I added a Put ratio spread to move up my break even and if it continues to go up it will reduce my max loss.

Sold the
(+1) 245 Put
(-2) 243 Put
Credit = $0.79
Max win = $279

18 août 2017

Transaction en cours

We where wrong in this trade, but finally we got a down move. Our options expires today at the close, but luckily the defensive play is going to pay out. The max win on the "Defensive Put ratio" is at the $243 price so that will help with the chances of making money in a trade where we picked the wrong side.

18 août 2017

Trade fermée manuellement

Closed the trade almost for break even, took a small loss.