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Friday, June 19, 2015

Spiders (SPY) June Ratio Put Spread

4/29/2015 (11:00:20 am, PT) FP

Ratio Put Spread

buy  +2 June 2015  $203 puts at $2.20
sell  -4 June 2015  $202 puts at $1.965   <---- 26="" br="" itm="" probability="">

Why did I place this trade?
  • stochastics were in the "overbought" region (see chart)
  • FOMC announcement just happened (11 am, PT)

Credit received:  $346
Maximum potential profit:  $546


6/17/2015 (10:09:23 am, PT)

I bought back the 2 short puts ($202 strike) at $0.11 to remove the risk.  
The FOMC was scheduled to make an announcement at 11 am, PT.


6/19/2015 (expiration)
SPY closed above $210, so the debit put spread expired "worthless."

NET PROFIT:  $301.85


Success!






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