sell to open -2 May 4, 2018 2650 puts at $2.15
buy to open +2 May 4, 2018 2605 puts at $0.10
Facts:
- credit: $2.05 = $410 max profit
- delta for short put: 28.42 (> 70% chance of success)
- margin requirement: $9000
- expiration day: May 4 (same day)
Why did I place this trade?
- SPX was trending up in the morning (strong trend)
- this is a same-day trade to take advantage of theta time decay
Friday, 5/4/2018 (12:41:37 pm, PT)
buy to close short puts at $0.05
let long puts expire worthless (sacrifice of $20)
Note: SPX closed at 2663.42
TOTAL PROFIT: $400 (in 3 hours) ..... 4.40% ROC
LEARN TO SELL PUT OPTIONS
