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Monday, June 25, 2018

August SPX Elephant

Trade Details:

SELL 20 SPX August 2440/2430 Credit Put spreads @0.60 Credit
SELL   7 SPX August 2845/2855 Credit Call spreads @1.05 Credit

Upside hedge:
BUY  7 SPY August 285 Calls @0.50

Total Net Credit: $1,585
Days to Expiration: 53


Risk profile:
 

SPX Chart for future reference:



Trade Update (July 10, 2018)

Closed CALL side of Elephant:

7 SPX August 2845/2855 Credit Call spreads @2.35 Debit
Original credit received was 1.05 Credit. 
Net loss 2.35 - 1.05 = 1.30 per spread. $910 in dollar terms.


7 SPY August 285 Calls @0.82 Credit
Original debit invested was 0.50.
Net gain 0.82 - 0.50 = 0.32 per contract. $224 in dollar terms.

Combining both, the loss on the Call side of the Elephant is $686
The Put side (2440/2430) remains in play and with its total credit of $1,200 will eventually make this Elephant a profitable trade as a whole.



Trade Update (August 6, 2018)

Closed PUT side of Elephant:

20 SPX August 2440/2430 Credit Put spreads @0.05 Debit
Original credit received was 0.60 per spread
Net gain 0.60 - 0.05 = 0.55 per spread. $1,100 in dollar terms.

The August SPX Elephant is now entirely closed, resulting in a net $414 gain when combining the Put side (+$1,100) and the Call side (-$686)


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