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SPX at 3975
I’m going to set up a new 112 Bear Trap as part of my weekly trade entry. Tomorrow is the day before Thanksgiving and I expect the volume to drop off, so I’m gong to take this trade a day early.
Normally, I will put these on every Wednesday.
This is a 30pt wide put debit spread and a short OTM naked put. I’m selling 2 puts for every 1 put debit spread.
Risk Profile:
Order Ticket:
I don’t have tremendous buying power, what /es numbers would you use?
Thanks, Igor!
If you’ve never traded these before, start with 1 and always keep at least 50% of BP free
Sorry, I meant the equivalent /es or /mes since they don’t match up exactly. But either way, I couldn’t find Jan 13 expiry on either. I will sit out this trade and root you on from the sidelines.
MES doesn’t have Jan 13 expiration open. TK just signalled a Jan-20 entry in MES, that is similar in spirit 🙂 .
https://mrtoptick.slack.com/archives/G6W5ZE1EU/p1669130494286319One option in /ES is 3870/3840/3370 Jan23 (52DTE) for $10.75
For ES or MES options, one can look at Days To Expiration and get as close to it as poss
SPX at 3896
With 1 week until expiration, the PDS is ITM by about 10 points.
This can go one of two ways:
1. SPX is inside the trap at expiration.
2. SPX is outside the trap at expiration.In both cases this should be a profitable trade (assuming we dont crash and move below short naked put at 3350).
I am going to close 3 of 5 PDS for about 12.75 credit
Risk Profile:
Order Ticket:
Closed 3 of 5 put debit spreads 12.80 credit
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