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10/3/2022 (9:54 am, PT)
sell -1 Oct 3, 2022 3575 put at $0.50 (prob ITM 3%)
buy +1 Oct 3, 2022 3500 put at $0.05
- net credit: $0.45
- 0 DTE
10/3/2022 (expiration)
SPX settled at 3678
my put spread expired perfectly
PROFIT: $45 (in 3 hours)
NOTE: When I placed my trade at 9:54 am, I could tell that SPX was going to keep rising today. Thus, I could have chosen a short put that was closer "to the money" (i.e., higher strike price) OR I could have sold more contracts. However, in the end, I chose to play it safe and opted for a relatively easy trade with a high probability for success.
