Ratio Put Spread
buy +2 June 2015 $203 puts at $2.20
sell -4 June 2015 $202 puts at $1.965 <---- 26="" br="" itm="" probability="">
Why did I place this trade?
- stochastics were in the "overbought" region (see chart)
- FOMC announcement just happened (11 am, PT)
Credit received: $346
Maximum potential profit: $546
6/17/2015 (10:09:23 am, PT)
I bought back the 2 short puts ($202 strike) at $0.11 to remove the risk.
The FOMC was scheduled to make an announcement at 11 am, PT.
6/19/2015 (expiration)
SPY closed above $210, so the debit put spread expired "worthless."
NET PROFIT: $301.85
Success!
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