CHRISTMAS PROMOTION
LTOptions at a 33% discount during the Year End Holidays.
Tell me More

BookingAlpha Option Trading Advisory

Wednesday, March 14, 2012

April SPY Bear Credit Spread

Demo-trading:
SELL 14 SPY April 145 Call (@0.49)
BUY 14 SPY April 147 Call (@0.23)

Credit: $0.26 (0.26 * 100 * 14 = $364)
Margin: $1.74 (1.74 * 100 * 14 = $2436)

Break-even point(s): 145.26 (Currently at 140.45, SPY would need to go up more than 40 points in the next 37 days to cause a loss)
Probability of success: 78.91%
Days to expiration: 37
Max return on margin: 14.94%
Commissions: $42.00 (Assuming Interactive Brokers' schema for Canadians)

Order execution:
(Click on image to enlarge)

Profit picture:
(Click on Image to enlarge)


Check out demo-record


Related Articles
Weekend Portfolio Analysis (03-18-2012)
April SPY Spread closed (03-22-2012) 

Go to the bottom of this page in order to see the Legal Stuff

No comments:

Post a Comment