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Showing posts with label XLY July 1 2022 156/168 credit call spread. Show all posts
Showing posts with label XLY July 1 2022 156/168 credit call spread. Show all posts

Saturday, August 13, 2022

Options trading : Consumer Discretionary Sector ETF (XLY) bearish trade

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FREE OPTIONS TRADING LESSONS HERE.


5/25/2022 (11:02 am, PT)  🠄 2 minutes after FOMC minutes were released

buy +1 July 1, 2022 $168 call at $0.35 (prob ITM 5%)

sell -1 July 1, 2022 $156 call at $1.45 (prob ITM 16%)

  • net credit:  $1.10
  • XLY = $141.80 (+3.98)
  • Margin:  $1200
  • 37 DTE
  • FOMC minutes at 11 am (PT)


6/13/2022

buy back entire call spread at $0.50 (debit)  🠜 🠜  50% of "max profit"

I usually close my spreads when my profit reaches 50% of "max profit"

It is NEVER a good idea to hold these types of trades all the way until expiration!

PROFIT:  $60