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Tuesday, April 12, 2022

Options trade : SPY bearish trade

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Wed. 1/5/2022 (11:27 am, PT)

buy +1 Feb 18, 2022 $530 call at $0.05 (prob ITM 0.58%)

sell -1 Feb 18, 2022 $495 call at $1.22 (prob ITM 12.37%)

  • net credit:  $1.17
  • FOMC minutes at 11 am (PT)
  • right after the minutes were published, SPY dropped $9
  • 44 DTE
  • overbought
  • at the time of this trade, SPY was down $3.61 at $473.94


Fri. 1/7/2022 (7:37 am, PT)

bought back entire call spread at $0.50

NET PROFIT:  $64.34 (in 2 days)


Reasons for closing the trade:

  • I achieved my goal of 50% of "max profit"
  • protect my capital
  • remove the risk
  • there were still 42 DTE