Sold $SPX March 1965/1970 credit Put spread for 0.30 credit
— The Lazy Trader (@lazytrading) March 10, 2015
BUY 4 SPX March 1965 Put @2.35
SELL 4 SPX March 1970 Put @2.65
Credit: 0.30 ($120 on 4 contracts)
Max Risk: 4.70 ($1880)
Days to expiration: 10
Of course the max risk will never happen as I would adjust the trade way before SPX penetrates 1970. I would be adjusting at around 2000. If I need to make an adjustment this same week I will still use March options. If the adjustment condition takes place next week then I will use April options for that.
I usually don't enter trades so close to expiration and normally I would have gone with April options, but the strike prices selection in April was too close to the April position I already have and I'm not a big fan of having all the risk concentrated on the same spot. I also considered RUT but it's looking less oversold than the SPX.
A chart for study and future reference:
(Click on image to enlarge)
Current positions in the Portfolio:
March SPX 1845/1850/2170/2175 unbalanced Iron Condor
$220 credit for the Model portfolio. Looking great. This will be a full winner next week.
April SPX 1855/1860/2200/2205 unbalanced Iron Condor
$220 credit for the Model portfolio. Also looking very good now with a higher than 80% probability of success. Lots of baby-sitting ahead but no concerns so far.
March SPX 1965/9170 Credit Put Spread
$120 credit. The new trade described on this article.
You can follow me on Twitter @lazytrading
Check out 2015 Track record
Weekend Portfolio Analysis (March 14, 2015)
Position expires worthless yielding max profit