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Showing posts with label SPX May 5 2021 4125/4085 credit put spread. Show all posts
Showing posts with label SPX May 5 2021 4125/4085 credit put spread. Show all posts

Wednesday, July 21, 2021

Options trade: SPX credit (bull) put spread, 5/5/2021 exp | 488% return

Monday, 5/3/2021

Sell -2 May 5, 2021  4125 puts at $2.02 (prob ITM 8.83%)
buy +2 May 5, 2021  4085 puts at $0.87 (prob ITM 3.73%)
  • net credit:  $1.15
  • margin (risk):  $8,000
  • SPX = 4195.06
  • 2 DTE


Wednesday, 5/5/2021 (EXPIRATION)

buy back short puts only (4125 strike) at $0.05 to remove the risk
let long puts expire

SPX settled at 4167.59

NET PROFIT:  $214.19 (2 days)

Return on capital ($8,000):  488% (annualized)