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Friday, January 6, 2017

Spiders (SPY) Credit Diagonal

Fri. 12/23/2016 (10:02:30 am, PT)

sell short  −4 Jan 27, 2017  $222 puts at $1.69
buy long  +4 April 21, 2017  $140 puts at $0.07 (cheap "wings")

probability of success:  65%
buying power effect:  ($32,800)


Fri. 1/6/2017 (6:30:10 am, PT)

buy back only the short puts at $0.75
leave open the long puts so I can use them again for the next set of short puts

PROFIT:  $376 (in 2 weeks)

SUCCESS!