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)
If you are interested in a responsible and sustainable way of trading options for consistent income with solid risk management, consider acquiring LTOptions, my options trading system to the last detail.
Check out 2016 Track Record
Bought $SPY Victory Spread = Sold 2 Feb 183 Call (8.36 credit each) and bought 8 Apr 200 Call (2.14 debit each)
— The Lazy Trader (@lazytrading) January 15, 2016
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)
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.
Position closed for a total loss of $105.
If you are interested in a responsible and sustainable way of trading options for consistent income with solid risk management, consider acquiring LTOptions, my options trading system to the last detail.
Check out 2016 Track Record
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