Stock / Symbol: S&P500 Index / SPX
Option Strategy: [private_monthly]bear call spread[/private_monthly]
Price at trade post: $1647
Reasoning: Starting out with a [private_monthly]bear call spread[/private_monthly] on SPX for June expiration. If we get a big down day (although it feels like the market just wants to keep going higher), we'll add a bull put spread, making the trade an Iron Condor. The greeks going into this trade are: -6.3 delta, 5.5 theta, and -40 vega. Setting an upside stop at [private_monthly]1667[/private_monthly]
Trade Details:
[private_monthly]
STO -2 SPX Jun13 1715 calls
BTO 2 SPX Jun13 1725 calls
for a min net credit of 0.85per contract. The mid is currently at $0.85 (day order, limit order).Note: if you're not filled today, it's ok to retry tomorrow..
Requirements:
Cost/Proceeds ($170)
Option Requirement $2,000
Total Requirements $1,830
Estimated Commission $6
[/private_monthly]
Max Risk: $1,830
Max Reward: $170 or 9.2% @ [private_monthly]0 - 1715[/private_monthly] by Jun 21
Profit Range: between $0 and [private_monthly]$1714.50[/private_monthly]
Suggested Upside Stop @ $1667
