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Friday, October 4, 2013

November SPX Bull Put Spread


This was the trade today and here are the details for the model portfolio:

Bought to Open 4 SPX November 1520 Put@5.50
Sold to Open    4 SPX November 1525 Put @5.90
Credit: 0.40 ($160)
Max Risk: 4.60 ($1840)
Days to Expiration: 41
Probability of success: around 90% when entered.

SPX closed today at 1690.50. SPX would have to follow 170 points to touch my short strike price. I know, I know all the issues with the budget and Obamacare and all that. But the VIX will go down once that is resolved, while now I can go so far out. We'll see, maybe I'll take some heat here before winning this one.

With this trade there are now 2 positions in October and 2 positions in November:
October SPX 1615/1620/1780/1785 Iron Condor ($400 Credit)
October RUT 1120/1125 Bear Call Spread ($200 Credit)
November SPX 1565/1570/1800/1805 Iron Condor ($320 Credit)
November SPX 1520/1525 Bull Put Spread ($160 Credit)

With so much exposure it is time to take a break. If anything, I will just adjust threatened positions, but it is not prudent to open anything else at this point. There is a total of $1080 credit in this four position and there is as much upside as downside exposure in the portfolio (3 bear spreads and 3 bullish spreads) and I like that.

As usual, a chart for future reference:
(Click on image to enlarge)

Check Track Record for 2013

Related Articles:
Weekend Portfolio Analysis (October 12, 2013)
Weekend Portfolio Analysis (October 26, 2013)
Weekend Portfolio Analysis (November 2, 2013)
Weekend Portfolio Analysis (November 9, 2013) 


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3 comments:

  1. I still am amazed that you got so much credit for the Nov SPX 1520/1525 put spread. I have the SPX Oct 1625/1630 and 1740/1745. I am feeling good going into the last 2 weeks but will look to close early if I can get out for a small debit.

    ReplyDelete
  2. Nice. Yes the 1630 might take some hit with all the political nonsense. Any plans for possible adjustments?

    ReplyDelete
  3. My plan is roll it down and out if SPX hits 1635.

    ReplyDelete