Trade 1 (10:03:01 am, PT)
sell -4 July 20, 2018 2800 puts at $0.95 (credit) ← 20 delta (acceptable)
buy +4 July 20, 2018 2775 puts at $0.05 (debit)
net credit: $0.90 x 4 x 100 = $360 (max profit)
this is a semi-bullish trade
Trade 2 (10:45:47 am, PT)
buy +2 July 20, 2018 2820 calls at $0.05 (debit)
sell -2 July 20, 2018 2805 calls at $2.15 (credit) ← 51 delta (high!)
net credit: $2.10 x 2 x 100 = $420 (max profit)
this is a semi-bearish trade
Trade 3 (10:57:07 am, PT)
buy back the 4 short puts (2800 strike) at $0.65 to remove the risk (I got scared!!)
Trade 4 (12:22:11 pm, PT)
buy back the 2 short calls (2805 strike) at $0.35 to remove the risk (I got scared again!!)
COMMENTS:
- at 11:05 am, PT (just 20 minutes after I sold my call spread) SPX hit a high of 2806.90 which meant that my short calls (2805 strike) were in-the-money 😨
- at 11:38 am, PT, SPX hit a low of 2800.36 and I could have bought back my short calls (2805 strike) at $0.35 and closed the trade ..... but did I do it? No! Because I was greedy ..... 😨
- at 11:49 am, PT, SPX rose all the way back up to 2804.16, only $0.84 from my short call strike of 2805 😨 ..... now I was stuck ..... 😨
- finally, at 12:22 pm, SPX came back down and I was able to buy back my short calls (2805 strike) at $0.35 and close the trade (I didn't want to mess around anymore!)
July 20 was quite the roller coaster ride, but I did make some money, so I'm thankful!
TOTAL PROFIT: $450
