Follow me on Twitter!

Showing posts with label SPX Sep 16 2022 3885/3900 credit call spread. Show all posts
Showing posts with label SPX Sep 16 2022 3885/3900 credit call spread. Show all posts

Friday, September 16, 2022

Options trading : SPX semi-bearish trade (credit call spread)

 GET WEEKLY TRADE IDEAS HERE.

FREE OPTIONS TRADING LESSONS HERE.


9/16/2022 (9:52:56 am, PT)

buy +1 Sep 16, 2022  3900 call at $1.02 (prob ITM 7%)

sell -1 Sep 16, 2022 3885 call at $2.47 (prob ITM 15%)

  • net credit: $1.45 x 1 x 100 =  $145 (max profit)
  • 0 DTE
  • SPX = 3850.91 (-50.44)


9/16/2022 (12:30:24 pm, PT)

At 10:56 am (PT), SPX suddenly started to rise (see Fig. 1 below).

SPX was heading in the WRONG direction, so I decided I would be OK with just 50% of max profit.

I bought back my call spread at $0.70 (debit)

At expiration, SPX settled at 3873.33, so my call spread would have been fine. But who needs the stress?  I'm glad I closed it at $0.70.

PROFIT:  $75


Fig. 1.  Intraday chart for SPX (9/16/2022)