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Friday, January 17, 2014

$SPY Spiders Jade Lizard (options)

11/18/2013

buy to open 2 Jan 2014 $183 call options at $1.36
sell to open 2 Jan 2014 $182 call options at $1.71
sell to open 2 Jan 2014 $174 put options at $2.05
Credit:  $2.40 =  $480 (cash received)

Facts:
  • max credit:  $480
  • max potential profit:  $480
  • breakeven price:  $171.60

1/13/2014

buy back the two $174 put options at $0.02 (to remove the risk of assignment)


1/17/2014 (expiration)
SPY closed at $183.635 (both calls are in-the-money)

buy back entire call spread at $0.97 (to avoid auto-assignment/auto-exercise fees)

NET PROFIT:  $238.27 .... SUCCESS!

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Learn to trade OPTIONS!
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www.moneyandlilia.com


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