SPX 15JUL 1-1-2

[IgorKeymaster]

SPX at 3772

I’m going to initiate a Bear Trap (aka 112) with 2 weeks until expiration.

Here’s my set up:

1. Buy To Open (1) 25 point wide put debit spread for around 3.00
2. Sell To Open (2) OTM puts for about 1.50 each to cover the cost of the long put spread.

I spent 3 to buy a put spread and I collect 3 by selling the OTM puts.

This trade does require quiet a bit of margin and using a Portfolio Margin account is required.

Similar trade can be set up using SPY, it should be a little more friendly for BPR.

Risk Profile:

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