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Thursday, February 16, 2012

March SPY Bear Call Spread

Demo-trading:
SELL 14 SPY March 141 Call (@0.39)
BUY 14 SPY March 143 Call (@0.16)

Credit: $0.23 (0.23 * 100 * 14 = $322)
Margin: $1.77 (1.77 * 100 * 14 = $2478)

Break-even point(s): 141.23 (Currently at 135.95, the SPX index would need to go up to around 1410 in the next 29 days to cause a loss)
Probability of success: 76.65%
Days to expiration: 29
Max return on margin: 12.99%
Commissions: $42.00 (Assuming a very unfavorable $1.50 per contract)

Order execution:
(Click on image to enlarge)

Profit picture:
(Click on Image to enlarge)
Check out demo-record


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