LILIA's MONEY MUSINGS: SPX May 5 2021 4125/4085 credit put spread

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

Wednesday, July 21, 2021

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%)

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)