FREE OPTIONS TRADING LESSONS HERE.
10/20/2022 (12:53 pm, PT)
buy +1 Oct 21, 2022 3840 call at $0.07 (debit)
sell -1 Oct 21, 2022 3770 call at $1.17 (credit) 🠈 prob ITM 5%
- net credit: $1.10 ($110 for one spread)
- 1 DTE
- SPX = 3671.14 (-24.02)
10/21/2022 (12:49:55 pm, PT) 🠈 expiration
buy back the 3770 short call at $0.10 to remove the risk
PROFIT: $100 (in one day)
NOTES:
SPX settled at 3752.75 (+86.97), so my short call would have been fine.
However, it's always better to close the short option to remove the risk.
