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SPY at 396.30
I’m going to pick up a PUT out in Jan. This put is trading around 16.00
To partially finance the purchase of this put, I’m going to sell a 393 put in the 16DEC expiry. Selling a put in DEC will lower the cost by about 9.00
This is a hedge that gives me about -8.51 delta in SPY. Size this trade based on how much short delta you need for your directional exposure.
Risk Profile:
Order Ticket:
SPY at 391.50
The 16DEC 393 PUT is expiring tomorrow. We’re going to roll the front month out and down for an additional credit. This will lower the cost of the long put in the 20JAN expiry by the credit we’re collecting.
Risk Profile:
Order Ticket:
SPY at 382.44
This trade has a short 392 put that is going to expire tomorrow.
Instead of rolling an option that is ITM, we’re going to take this trade off for a nice gain and wait for another set up.
Risk Profile:
Order Ticket:
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