Trade 1 (9:58:34 am, PT)
buy +4 July 13, 2018 2825 calls at $0.06 ("wings")
sell −4 July 13, 2018 2805 calls at $2.36 ← 44.78 delta
- net credit: $2.30 x 4 x 100 = $920 (max profit)
- margin: $7429
Trade 2 (10:49:26 am, PT)
buy back the short calls (2805 strike) at $1.00 to take profits
Trade 3 (10:55:18 am, PT)
SPX went back up, so I sold (to open) the same calls (2805 strike) again at $1.20 (this time the delta was 31)
Trade 4 (12:47:20 pm, PT)
- buy back the short calls (2805 strike) at $0.10 to take profits and remove the risk
- let the 4 long calls (2825 strike) expire at 1:00 pm, PT
TOTAL PROFIT: $960 (in 3 hours) ← this is more than the initial "max profit" of $920
😃
LEARN TO SELL CALL OPTIONS HERE!
