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Friday, May 4, 2018

June SPX Elephant

Trade Details:

SELL 20 SPX June 2460/2450 Credit Put spreads @0.60 Credit
SELL 7   SPX June 2780/2790 Credit Call spreads @1.00 Credit

Upside and downside hedges:
BUY  7 SPY June 279 Calls @0.47
BUY  1 SPY June 251 Puts @1.43

Total Net Credit: $1,428
Days to Expiration: 42



Risk profile:
 

SPX Chart for future reference:



Trade Update - May 17, 2018

Closed the entire Call side of the Elephant:
7   SPX June 2780/2790 Credit Call spreads @2.20 Debit
Original credit received was 1.00, so this is a net 1.20 loss per spread (-$840 for 7 spreads)

7 SPY June 279 Calls @0.67 Credit
Original debit paid was 0.47, so this is a 0.20 gain per contract (+$140 for 7 contracts)

The Call side of the Elephant results in a -$700 loss.
The Put side remains in play, virtually a winner now very far out of the money and with a total credit collected that is greater than today's loss on the Call side, which will make the position a small net winner in the end.




Trade Update - Jun 11, 2018

Closed the entire Put side of the Elephant:
20 SPX June 2460/2450 Credit Put spreads @0.05 Debit
Original credit received was 0.60, so this is a net 0.55 gain per spread (+$1100 for 20 spreads)

1 SPY June 251 Calls @0.03 Credit
Original debit paid was 1.43, so this is a 1.40 gain per contract (-$140 for 1 contract)

Net-net, the Put side results in a $960 profit today.
The Position is entirely closed now. The profit from the Put side ($960) is greater than the loss suffered on the Call side ($700). The June SPX Elephant ends up as a tiny +$260 winner.


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