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Thursday, January 5, 2017

Spiders (SPY) Credit Diagonal

Wed. 12/21/2016 (9:57:26 am, PT)  RD

sell  −2 Jan 25, 2017  $220 puts at $1.05 (credit)
buy  +2 Apr 21, 2017  $130 puts at $0.08 (debit) *

  • probability of success:  76%
  • 35 days 'til expiration (DTE)
  • buying power effect:  ($18,000)
* the long puts are my cheap "wings" to decrease capital requirements


Thu. 1/5/2017 (7:27:53 am, PT) (20 DTE)

  • buy back short puts only at $0.48 (debit)
  • leave open long puts to be used again for the next set of short puts

NET PROFIT:  $114 (in 2 weeks)

SUCCESS!