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BookingAlpha Option Trading Advisory

Thursday, October 13, 2016

December SPX Credit Put spread

Today I initiated a December position, going out in time a little further than usual. I don't want to add anymore November exposure due to the elections:


Trade details:

SELL 20 December SPX 1870 Put @9.95
BUY  20 December SPX 1860 Put @9.30

Total  Credit received: $1,300
Days to expiration: 63


An SPX chart for future reference and self-study:
(Click on image to enlarge)
Stochastics and McClellan Oscillator both oversold. In addition, only 26% of stocks were above their 20 Day Moving Average at the time of the trade.

Trade Update - November 15, 2015

Spread closed for 0.10 debit

Buy 20 SPX Dec 1870 Put @1.09
Sell 20 SPX Dec 1860 Put @0.99
Debit: 0.10

Initial credit was 0.65, so there is a 0.55 net profit.
In dollar terms that is 0.55 * 100 * 20 spreads = $1,100
Closing this one early. 31 days before expiration and almost 85% of max profit achieved.

Check out 2016 Track Record


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