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Wednesday, April 14, 2021

Options trade: SPX credit call spread | 378% return

 Fri. 3/5/2021

buy +1 March 8, 2021  3975 call at $0.07 (prob ITM 0.30%)

sell -1 March 8, 2021  3915 call at $1.42 (prob ITM 6%)

net credit:  $1.35 x 1 x 100 = $135

margin:  $5861

2 DTE

SPX at 3828.60


Mon. 3/8/2021 (EXPIRATION)

buy back short call at $0.10 to remove the risk of assignment

NET PROFIT:  $121.46 (2 days)

Return on capital:  378% (annualized)


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