Stock / Symbol: S&P500 Index / SPX
Option Strategy: [private_monthly]bull put spread[/private_monthly]
Price at trade post: $2079
Reasoning: Going to take advantage of the increased volatility, due to the concerns over Greece, and open up a [private_monthly]bull put spread[/private_monthly] here on SPX for August option expiration. If the market returns to its recent highs, I'll look to add a[private_monthly]bear call spread, and thus turn the trade to an iron condor[/private_monthly]. The Greeks going into this trade are: 0.8 delta, 1.3 theta, and -8.4 vega.
Trade Details:[private_monthly]
STO -1 SPX Aug15 1880 put
BTO 1 SPX Aug15 1870 put
for a min net credit of 0.80 per contract. The mid is currently at $0.80 (GTC order, limit order).
Requirements:
Cost/Proceeds: ($80)
Option Requirement: $920
Total Requirements: $920
Estimated Commission: $3
[/private_monthly]
Max Risk: $920
Max Reward: $80 or 8.7% at/over [private_monthly]$1880[/private_monthly] by Aug 21st
Profit Range: at/over [private_monthly]$1883[/private_monthly] by Aug 21st
Suggested Upside Stop: NA
Suggested Downside Stop: @ $1979
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