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Wednesday, October 1, 2014

November 2014, SPX Credit Put spread

Today I entered an SPX 1755/1760 Credit Put spread with November options:


Here are the details:

Sell 4 November SPX 1760 Put @7.55
Buy 4 November SPX 1755 Put @7.25

Credit received: 0.30 ($120 for 4 spreads)
Max Risk: 4.70 ($1880 for 4 spreads)
Break even point: 1759.70 (11% below SPX price at the time trade was open)

I didn't time this trade well. In fact, the market kept falling all day long and I could have sold several points below.

As usual, the chart of SPX at market close for future reference:
(Click on image to enlarge)

These are the current positions:

October RUT 1020/1030/1230/1240 Iron Condor
$332 credit, 88% probability of success, 15 days to expiration. Might need to adjust Put side if RUT hits 1060 or so.Current RUT price is 1085.

November RUT 970/980 Credit Put Spread
$120 credit, 89% probability of success, 50 days to expiration. Might need to adjust Put side if RUT hits 1040 or so.

November SPX 1755/1760 Credit Put Spread
$120 credit, 89% probability of success, 50 days to expiration. Will adjust if SPX goes down to 1850 or so.

Check out 2014 Track Record

Related Articles
Weekend Portfolio Analysis (October 11, 2014)  
Spread is adjusted to 1595/1600 (October 15, 2014)


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2 comments:

  1. "I didn't time this trade well. In fact, the market kept falling all day long and I could have sold several points below."

    I also didn't time my RUT credit spread trade well today as it fell another 10 points during the day. But our strategy does not require us to be very precise with our timing. As long as the market does not collapse, we will be okay. I like your November SPX credit put spread. It is a high probability trade in my book.

    You can follow me on Twitter @lienjonathan where I tweet my 90% probability credit spread trades in real-time for free.

    ReplyDelete
  2. Thanks for the feedback pal.
    Good luck on your positions. The week is being exciting indeed with some important releases still to come out.
    Cheers,
    LT

    ReplyDelete