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Friday, January 15, 2016

SPY Victory Spread Feb-183Calls/Apr-200Calls

Today I entered a Victory Spread, which is a nicer name for a Ratio Diagonal.

Trade Details:
Sell 2 February 183 Call @8.36
Buy 8 April 200 Call @2.14

Net: $40 debit (or 0.20 per 1:4 Victory Spread)

I wanted to add another speculative bullish play, but I didn't want to do it at the expense of losing more money should the market keep relentlessly falling. So, with this position there is a chance to make money on both up and downside moves, although much more on the way up of course.

Risk Profile picture:
(Click on image to enlarge)
Small max risk of around $180, or 0.18% on a 100K portfolio.
The profile picture of this position changes over time, which makes it a little bit more challenging to manage. We'll see how it unfolds.

SPX chart at market close for future reference:
(Click on image to enlarge)

Trade Update - Feb 10, 2016
Position closed for a total loss of $105.

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Check out 2016 Track Record

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