Follow me on Twitter!

Friday, January 18, 2019

Options trades: SPX credit call spreads (semi-bearish trades)

Friday 1/18/2019 (Expiration Friday)

WATCH THE VIDEO HERE!


Trade 1 (10:48 am, PT)

buy +2 January 18, 2019  2705 calls at $0.05 (cheap "wings")
sell -2 January 18, 2019  2675 calls at $1.80 (27 delta)


Trade 2 (11:38 am, PT)

buy back the 2 short calls (2675) at $0.60 (take profits and remove the risk)

PROFIT #1:  $230 (in 45 minutes)



Trade 3 (11:55 am, PT)

sell -2 January 18, 2019  2675 calls at $0.80 (17.46 delta)

Comment:  I'm selling (to open) two new calls (same strike) so I don't "waste" my two long calls ("wings") (there's still 1 hour left in the trading session)


Trade 4 (12:49 pm, PT)

buy back the 2 short calls (2675) at $0.10

Comment:  The market makers were "torturing" me by making me wait until 12:49 pm.  They refused to sell me the 2675 calls for $0.10 even though they were pretty far out-of-the-money

PROFIT #2:  $140 (in 55 minutes)

TOTAL PROFIT:  $370

Comments:

  • at 12:52 pm, SPX was at 2663.37 and then staged a sharp reversal (back up)
  • at 1:00 pm, SPX closed at 2670.71
  • I'm VERY glad I bought back my short calls at $0.10 because that late-afternoon reversal would have completely stressed me out

WATCH THE VIDEO HERE!