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SPX at 3008
I’m looking to put on a trade that is slightly bearish.
Right now, SPX is pricing in +/- 60 points for 04OCT expiration. I’m going to sell a put that is about 30 points below the current market. I’m also buying a put at the same strike price but with 2 more weeks until expiration.
This is a Delta negative trade with positive Theta and positive Vega.
This trade makes money if SPX trades towards the short strike (2975) over the next 2 weeks. I’m looking to make 20% return on risk and don’t want to risk too much more than what I’m looking to make.
Order Ticket Type Asset Duration Strike C/P Sell To Open SPX 04OCT 2975 PUT Buy To Open SPX 18OCT 2975 PUT Total Debit: 11.40 SPX is set to open relatively flat this morning. On Friday, SPX closed at 2992
I’m looking to exit this Put Calendar as close to 13.00 as possible, current pre-market MID is showing 12.80-12.90
An exit at 13.00 would yield around 14% return on risk
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 04OCT 2975 PUT Sell To Close SPX 18OCT 2975 PUT Total Credit: 12.90
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