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SPX at 4156
I’m putting on a Bear Trap with 21DTE
This trade is made up of a PUT DEBIT SPREAD AND A PUT CREDIT SPREAD. For this trade, I am using a 15pt wide put debit spread (1 lot) and a 50pt wide put credit spread (2 lots).
This trade will require around $8,500 + debit paid in BPR.
My goal is to make about 5% ROR and if SPX starts to really roll over, I will look to exit the trade around SPX 3700.
This trade has a planned capital of $10,000
Risk Profile:
Order Ticket:
SPX at 4062
The price is starting to move outside of the ‘trap’.
I’m going to roll the upper long put down 10 points. This adjustment is going to remove all of the upside risk but add a bit more risk on the downside.
This trade has 8 days until expiration. If SPX reverts back into the trap, we have a chance to make a bit more profit. If SPX stays above 4050, we’ll still have a nice profitable trade. The big risk is if SPX moves 8% to the downside in the next 7 days.
Risk Profile:
Order Ticket:
SPX at 3980
This trade has 2 days left until expiration. The price is still inside the Bear Trap and I think it’s time to close
Risk Profile:
Order Ticket:
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