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BookingAlpha Option Trading Advisory

Tuesday, October 25, 2011

November SPX Bull Put Spread

Demo-trading:

Sell 5 SPX Nov 1125 Put @7.60
Buy 5 SPX Nov 1120 Put @6.80

As a result a 0.80 credit was obtained per vertical, meaning a total of 0.80 * 5 * 100 = $400 dollars of credit. The maximum loss in this play is $2100 if the market falls abruptly before November 19 and SPX ends up below 1124.20.
Probability of success: 85.57%.
Days to expiration: 24

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