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Tuesday, June 22, 2021

Options trade: SPX credit bull put spread, 6/23/2021 exp | 204% return

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Wed. 6/16/2021 (right after FOMC announcement)

sell -2 June 23, 2021  4025 puts at $5.63 (prob ITM 9%)

buy +2 June 23, 2021  3990 puts at $4.33 (prob ITM 7%)

credit:  $1.30 x 2 x 100 = $260 (max profit)

margin (risk):  $7,000


Tue. 6/22/2021

bought back the entire spread for $0.05 (debit)

NET PROFIT:  $235.42 (6 days)

Return on capital:  204% (annualized)

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