Vertical debit spread on SPY

2017年6月29日

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.

2017年7月17日

トレード稼働中

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

2017年8月18日

トレード稼働中

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.

2017年8月18日

手動でトレードを終了しました

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