S&P500 ETF (SPY) trade – Update #2 And Merry Xmas!!!

Merry Christmas everyone! As today is also US holiday , for those who have credit spread, you should be glad as time decay is on your side!

SPY Bull Put Credit SpreadΒ trade is doing good and we can consider to close the position next week to capture 50-60% of the premium collected. Continue reading “S&P500 ETF (SPY) trade – Update #2 And Merry Xmas!!!”


Trade adjust/repair method #1

I did mention about the important of trade adjustment or repair in the previous posts when we trade options. Let me kick start the first method in this post!

It is always easier to illustrate via an example. Let’s assume we have a Bull Put Credit Spread that consists of 2 options trade as per below:-

1. STO SPY 195 PUT strike, Jan wk5 2016, 39 DTE, premium $3.3
2. BTO SPY 190 PUT strike, Jan wk5 2016, 39 DTE, premium $2.1

Continue reading “Trade adjust/repair method #1”

S&P500 ETF (SPY) trade

DOW Jones and S&P dropped two consecutive days post rate hike last Wednesday. I will monitor Monday’s S&P 500 Index Futures (/ES) before market open to decide if I will proceed to initiate a Bull Put Credit Spread against S&P500 ETF (SPY). My view is that the SPY has a high probability of trading range-bound/consolidation between 195 to 215 in the next 1 or 2 months. Hence, I am keen to construct the following trade after the market open tomorrow:-

Continue reading “S&P500 ETF (SPY) trade”

Options Strategy – Bear Call Credit Spread

In the previous post, we discussed Bull Put Credit Spread. Β In this post, let’s decompose and explain Bear Call Credit Spread using Lifestyle Options Trader’s method.

Bear Call Credit Spread (BCCS)
1. Bear -> Bearish Outlook
2. Call -> Call Options
3. Credit -> Receive premium Continue reading “Options Strategy – Bear Call Credit Spread”