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Wednesday, June 23, 2021

Options trade: SPX credit (bull) put spread, 5/21/2021 exp | 29,205% return!

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Wed. 5/19/2021 (12:02 pm, PT)

sell -2 May 21, 2021  3970 puts at $5.11 (prob ITM 11%)

buy +2 May 21, 2021  3940 puts at $3.41 (prob ITM 7.39%)

SPX = 4085 (-42)

net credit:  $1.70 x 2 x 100 =  $340 (max profit)

margin (risk):  $6000


Wed. 5/19/2021 (12:54 pm, PT) <--- 52 MINUTES later!

bought back entire spread for $0.65 (debit)

NET PROFIT:  $200.04 (52 MINUTES!)

Return on capital:  29,205% (annualized)

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