buy +2 May 11, 2018 2750 calls at $0.10
sell -2 May 11, 2018 2725 calls at $3.40
- net credit (max profit): $3.30 x 200 = $660
- margin: $5000
- delta of short calls (2725): 48.63 (risky!!)
- stochastics: overbought
- expiration: 1 pm (PT)
Friday, 5/11/2018 (12:57:50 pm, PT)
- buy back short calls (2725) at $0.60
- let long calls (2750) expire
PROFIT: $540 (in 3 hours)
COMMENTS:
It's a good thing I bought back those short calls at $0.60 because they would have ended up ITM at 1 pm (expiration)!!!!
SPX closed at 2727.72 at expiration.
When you're trading short options, it's REALLY important to watch the charts carefully so you can make informed decisions. Do NOT hold your short options until the last minute if it looks like they may end up ITM. Just spend some money and buy back your short options!!
