Stock / Symbol: S&P500 Index / SPX
Option Strategy: bull put spread
Trade entry date / price: Jan 23 / $1822
Price at this adjustment: $1755
Current Position:
[private_monthly]
Short -2 SPX Feb14 1680 puts
Long 2 SPX Feb14 1670 puts
at a net credit of 0.50
[/private_monthly]
Reasoning: With this position at risk and with a potentially ugly jobs report due out Friday, I'm going to buy back the put spread here. Fortunately, our downward market biased trades on DIA and TZA, have more than made up for the current loss on this trade. The current greeks on this trade are: 4 delta, 10.5 theta, and -19 vega. On Friday, I'll look to put the spread (possibly with different strikes) back on.
Closing Position Details:
[private_monthly]
BTC -2 SPX Feb14 1680 puts
STC 2 SPX Feb14 1670 puts
for a max net debit of $1.10 per contract (day order, limit order). The mid is currently at $1.05 .
Max Risk: $1,900
Max Reward: $100 or 5.2% @ [private_monthly]1680 +[/private_monthly] by Feb 21
Profit Range: at/over [private_monthly]$1680[/private_monthly] by Feb 21
Suggested Upside Stop: NA
Suggested Downside Stop: @ $1766
Non-members, click here for access
