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The 129/131 SPY Bull Put Spread has a temporary loss of ($182), I would have liked to close it this week but it didn't enter profitable territory. Even if the downtrend channel develops as I drew it, it represents an SPY value of 132 - 133 by June expiration. Which would make this position a winner, but, there's no reason to risk it. As soon as this trade is in profit, enough to cover commissions (in/out) I will be exiting.
The 70/72 IWM Bull Put Spread on the other hand, will stay. Hopefully until expiration. This one feels a lot safer to me, farther away from current market prices and showing a temporary profit of $91.
The coming week will have some news releases that might move the markets a bit: Retail Sales on Tuesday, Housing Starts, Industrial Production and FOMC Minutes Wednesday, and Jobless Claims, Philly Fed, and Leading Indicators Thursday.
If the markets keep going down, I will not open new Put credit spreads, as the risk of the portfolio in the downside needs to be contained. If the sell off threatens the SPY 131 value, I will be adjusting that position . If the sell off is not strong, I won't do anything. If the market starts to move up from oversold terirtory I will look forward to closing the SPY 129/131 spread for a small profit, and if we SPX gets to hit 1380-1390 I would like to sell some calls, using, again Credit call spreads. That's my plan for now!
Be well guys! And trade better!
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