SPX 24JUN 1-1-1

[IgorKeymaster]

SPX at 4119

I’m going to set up a Bear Trap with 21DTE

This set up is pretty straight forward. I’m buying a 25 point wide put debit spread at around expected move lower and I’m selling a farther OTM put to cover the cost of the debit spread.

In this trade, I’m buying a put spread for about 4.75 and I’m selling a put for 5.10 to cover the cost. This would leave me with a NET credit of 0.35

Risk Profile:

Order Ticket:

[IgorKeymaster]

SPX at 3697

This trade expires next week (7DTE). To avoid drama, it’s best to exit this trade near breakeven.

I’m going to hold until Thursday of next week.

For now I’m going to Sell To Close the long put debit spread that is ITM and Buy To Open a put debit spread near ATM

Order Ticket:

This is what this adjustment does to the risk graph:

I’m also going to Sell To Open an OTM Call naked to keep my NET delta near flat.

This is what the risk graph looks like after all adjustments:

[IgorKeymaster]

SPX at 3780

I’m going to Buy To Close the 3860 call here.

This trade expires in 2 days.

Order Ticket:

Risk Profile:

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