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Showing posts with label SPX Oct 28 2022 3915/3975 credit call spread. Show all posts
Showing posts with label SPX Oct 28 2022 3915/3975 credit call spread. Show all posts

Thursday, October 27, 2022

Options trading : SPX credit call spread (bearish)

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10/27/2022 (12:59:10 pm, PT)

buy +1 Oct 28, 2022 3975 call at $0.07 (debit)
sell  -1 Oct 28, 2022 3915 call at $1.02 (credit)
  • net credit:  $0.95 ($95 for each spread)
  • 1 DTE
  • SPX =  3805.65 (-24.95)
  • prob ITM for 3915 short call = 4% 
  • probability of success = 96%


10/27/2022 (1:11:56 pm, PT)  🠈  13 minutes later 

buy back the 3915 short call at $0.20 and take a quick profit

PROFIT:  $75 (in 13 minutes)


COMMENTS:

I was VERY surprised to see my call's premium drop so much in the after-hours market.  My initial plan was to buy back the short call at $0.05 sometime tomorrow (expiration day), but Wall Street gave me a surprise gift! 

Depending on what happens tomorrow (Oct 28), I may or may not reuse my long call ("wing") and sell (to open) another OTM call option.

For now, I am VERY happy that I made $75 in just 13 minutes!