Stock / Symbol: SPDR S&P 500 / SPY
Option Strategy: bear call spread
Trade entry date / price: 29 Aug 2019 / $291.32
Price at this post: $293.44
Reasoning: Submitting a closing order for our bear call spread on SPY to capture at least 70% of the trade's profit & reduce the risk of SPY trading over $296 on Friday. Our position currently has a delta of -29.3, a positive theta of 16.4 and a negative vega of -8.8.
Current position:
Short 2 SPY 06Sep19 296 calls
Long 2 SPY 06Sep19 298 calls
at a net credit of $0.48 per contract
Closing Trade Details:
BTC 2 SPY 06Sep19 296 calls
STC 2 SPY 06Sep19 298 calls
for a max net debit of $0.12 per contract (GTC order, limit order). The mid is currently at a debit of $0.30. I expect we won't get filled today but we may get filled tomorrow.
Analysis:
Max Risk: $304
Max Reward: $96 or 33% by Sep 6th with SPY at/under $296
Profit Range: SPY at/under $295.04 by Sep 6th
Suggested Upside Stop @ $296
Expected Profit / Loss upon fill: $72 or 23.7% (before trade commissions)
Expected Trade commissions: $12
