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Wednesday, June 23, 2021

Options trade: SPX credit (bull) put spread, 5/26/2021 exp | 183% return

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Tue. 5/18/2021 (8 DTE)

sell -1 May 26, 2021  3920 put at $4.80 (prob ITM 7.60%)

buy +1 May 26, 2021  3880 put at $3.50 (prob ITM 5.54%)

  • net credit:  $1.30 x 1 x 100 =  $130 (max profit)
  • margin (risk):  $4,000
  • SPX = 4146 (-16.62)


Mon. 5/24/2021 (2 DTE)

buy back entire put spread for $0.05 (debit)

NET PROFIT:  $120.22 (6 days)

Return on capital:  $183% (annualized)

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