Real Deal – Feb 2016 #4 (SPY – Bear Call Spread)


Feb 2016 #4 (SPY – Bear Call Spread)
Placed an order (SPY Bear Call Spread) yesterday and the order get filled while I was sleeping. SPY Bear Call Spread, 29 DTE and capture $1.92 ($192 per options contract) premium. Options detail as per the screenshot below.

 

Rationale:
1. Resistance @ $195

2. I am risking $318 to make $192 in the next 29 days. As long as SPY remain below $195, I will profit $192. If SPY price goes against me within the 29 days, I will repair the trade base on the market condition and my perspective of the market. Follow up on this position will be blogged in the future post.

3. The Return On Margin of the trade is 60% ($192/$318) in 29 days. 

Stay tune for my next updates!

 

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