Trade 1 (9:27:08 am, PT) ← SPX @ 2915.81
buy +6 Sept 24, 2018 2935 calls at $0.05 (cheap wings)
sell -6 Sept 24, 2018 2920 calls at $1.25 ← 21 delta
- net credit: $1.20 x 6 x 100 = $720 (max profit)
- buying power reduction: $9,000
Trade 2 (12:24:11 pm, PT) ← SPX @ 2920
sell -6 Sept 24, 2018 2920 puts at $1.35 ← 50 delta
buy +6 Sept 24, 2018 2910 puts at $0.05 (cheap wings)
- net credit: $1.30 x 6 x 100 = $780 (max profit)
- buying power reduction: none
After I added the vertical put spread, I ended up with the following position:
a "short straddle with wings"
long +6 Sept 24, 2018 2935 calls at $0.05
short -6 Sept 24, 2018 2920 calls at $1.25
short -6 Sept 24, 2018 2920 puts at $1.35
long +6 Sept 24, 2018 2910 puts at $0.05
At the Closing Bell .....
SPX closed at 2919.37 ("settlement value")
My entire vertical call spread was fine, but my short puts ended up in-the-money. 😶
CLICK HERE to find out what happened!
PROFIT: $1122 (in 3.5 hours)
