FREE OPTIONS TRADING LESSONS HERE.
9/16/2022 (9:52:56 am, PT)
buy +1 Sep 16, 2022 3900 call at $1.02 (prob ITM 7%)
sell -1 Sep 16, 2022 3885 call at $2.47 (prob ITM 15%)
- net credit: $1.45 x 1 x 100 = $145 (max profit)
- 0 DTE
- SPX = 3850.91 (-50.44)
9/16/2022 (12:30:24 pm, PT)
At 10:56 am (PT), SPX suddenly started to rise (see Fig. 1 below).
SPX was heading in the WRONG direction, so I decided I would be OK with just 50% of max profit.
I bought back my call spread at $0.70 (debit)
At expiration, SPX settled at 3873.33, so my call spread would have been fine. But who needs the stress? I'm glad I closed it at $0.70.
PROFIT: $75
Fig. 1. Intraday chart for SPX (9/16/2022)
