Real Deal – Feb 2016 #6 (WYNN – Bear Call Spread)

Feb 2016 #6 (WYNN – Bear Call Spread)
Placed an order (WYNN Bear Call Spread) yesterday and the order get filled while I was sleeping. SPY Bear Call Spread, 24 DTE and capture $1.92 ($192 per options contract) premium. Options detail as per the screenshot below.

Screen Shot 2016-02-25 at 12.32.09 AM

Rationale:
1. Resistance @ around $80; I anticipated the forming of bearish pattern after shooting star was formed on 22 Feb 2016. This was slightly aggressive strategy base on the strike that I had chosen and hence I was compensated with higher premium.

2. I was risking $318 to make $192 in the next 24 days. As long as WYNN remain below $80, I will profit $192. If WYNN price goes against me within the 24 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 24 days. 
Screen Shot 2016-02-25 at 12.33.01 AM
Stay tune for my next updates!

 

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