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Friday, October 7, 2022

Options trading : SPX semi-bearish trade (credit call spread)

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FREE OPTIONS TRADING LESSONS HERE.


Fri. 10/7/2022 (10:45:48 am, PT)  🠈 Expiration Friday

buy +1 Oct 7, 2022 3765 call at $0.05 (debit)

sell -1 Oct 7, 2022 3700 call at $0.55 (credit)

net credit: $0.50 ($50 for one contract)




Comments:

★  I placed a bearish trade because SPX gapped down at the Opening Bell and the intraday trend was clearly bearish

★  I went pretty far OTM because sometimes the markets will reverse after a morning selloff

★  I placed my bearish trade when the intraday stochastics were in the "overbought" region (see chart below)




Fri. 10/7/2022 (expiration)

SPX closed (settled) at 3639.84 (-104.68)

My call spread expired perfectly

PROFIT:  $50 (in 2.25 hours)