SPX 6JAN 112 BEAR TRAP

[IgorKeymaster]

SPX at 3969

I’m buying 3860/3830 put debit spread and I’m paying for it by selling 2x 3250 puts naked.

Net credit for this trade 10.40 per 1 lot. This is a 5 lot trade and it takes up around 86k initial margin.

I will hold this trade as close to expiration as possible.

My first adjustment is going to be IF/WHEN SPX goes 50 points inside my PDS (3780 level)

Risk Profile:

Order Ticket:

[IgorKeymaster]

SPX at 3829

I’m going to rebalance my NET delta for this trade

Order Ticket:

[IgorKeymaster]

SPX settled at 3895

The 112 Bear Trap expired worthless, allowing us to keep the original credit we collected.

The 3840/3870 Call Debit spread we picked up on 12/20 expired ITM, bringing an additional $4,600 profit.

Here’s the recap of this trade:

[Author]

Posts