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SPX at 3971
I’m setting up a Bear Trap with 21 days until expiration.
The ‘TRAP’ is going to be in the range between 3900-3600
I’m buying a 15 point wide put debit spread (3900/3885) and I’m selling a 50 point wide put credit spread (3600/3550).
This trade is going for a small debit of 1.30-1.40
The BPR for this trade is $3,500 plus debit paid. I’m going to set up this trade with planned risk of $10,000 (2 contracts)
Risk Profile:
Order Ticket:
SPX at 4123
The price is clearly moving away from the trap area with 17 days until expiration.
I am going to close 1 of 2 put debit spreads, reducing possible loss if SPX continues to stay above 3900
Risk Profile:
Order Ticket:
SPX at 3914
I’m going to Sell To Close the long put vertical and leave the short put spreads to expire on Monday
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