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BookingAlpha Option Trading Advisory

Monday, November 12, 2018

December SPX Elephant

Trade Details:

SELL 20 SPX December 2500/2490 Credit Put spreads @0.65 Credit
SELL   8 SPX December 2910/2920 Credit Call spreads @0.95 Credit

Long hedges:
BUY   8  SPY December 292 Calls @0.47
BUY   1  SPY December 257 Puts  @1.71

Total Net Credit: $1,513
Days to Expiration: 38

Risk profile:

SPX Chart for future reference:

Trade Update (Dec 19, 2018)

Closed the Entire Put side before the FED Announcement:
Thanks to the nice rally we had early in the session where SPX almost touched 2600.

20 SPX December 2500/2490 Credit Put spreads @0.50 Debit.
Original Credit received was 0.65. So, this is a 0.15 gain, or $300 in 20 spreads.

SELL  1  SPY December 257 LoNg Put  @2.21
Original Debit paid was 1.71 so net gain is $50 here.
Combining both things $300 + $50 it is a $350 gain on the Put side.
This position was opened when SPX was around 2760. SPX has gone down relentlessly and yet this Put side came out as a winner.
The Call side is still in play and will be a winner at expiration in two more days.

Trade Update (Dec 21, 2018)

- Call side expires for max on Friday
8 SPX December 2910/2920 Credit Call spreads
0.95 original Credit = +$760
- 8  SPY December long 292 Calls 
0.47 debit = -$376
Net-net it is a  $384 profit.

Combining both the Put side ($350) and the Call side gains ($384), the position resulted in a $734 gain before commissions.

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