Follow me on Twitter!

Showing posts with label SPX Oct 21 2022 3770/3840 credit call spread. Show all posts
Showing posts with label SPX Oct 21 2022 3770/3840 credit call spread. Show all posts

Thursday, October 27, 2022

Options trading : SPX credit call spread (bearish)

  GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.



10/20/2022 (12:53 pm, PT)

buy +1 Oct 21, 2022 3840 call at $0.07 (debit)
sell -1 Oct 21, 2022 3770 call at $1.17 (credit) 🠈 prob ITM 5%
  • net credit:  $1.10 ($110 for one spread)
  • 1 DTE
  • SPX = 3671.14 (-24.02)



10/21/2022 (12:49:55 pm, PT)  🠈 expiration

buy back the 3770 short call at $0.10 to remove the risk

PROFIT:  $100 (in one day)


NOTES:

SPX settled at 3752.75 (+86.97), so my short call would have been fine.
However, it's always better to close the short option to remove the risk.