Thursday, November 3, 2011

Sniper and the Weekly Options Sell Spread Trades

Matrix lining up for the downside next week (early). Looking to do bear call credit spreads on the weekly SPY tomorrow.
Posted: 11:37AM Nov 4, 2011
Rating: +1
can you give me an example of one of your trades? I am interested in doing a bear call credit spread.

Posted: 1:51PM Nov 4, 2011
Rating: +1
OK..SPY is trading at 126.25. Sell the SPY 126 call for $202 and buy the 127 SPY call for $154 (this is the bid and the actual asked at close on the weekly SPY options that expire in one week from tomorrow). So your net credit would be the difference which is $48. Your risk in the trade is that SPY closes above 127 at expiration and you would lose $52 on the trade.
Posted: 1:57PM Nov 4, 2011
Rating: 0
perfect...thank you

Q: if SPY was to close next week @124 how do I make money?
Posted: 2:43PM Nov 4, 2011
Rating: 0

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Insightful and Useful Comment!