Stock / Symbol: S&P 500 ETF / SPY
Strategy: Vertical Put Spread
Trade entry date / price: 23 Sep 2020 / $323.20
Price at this post: $332.46
Update / Reasoning: I was right about a pullback but wrong about how much of one. I was looking at SPY pulling back to its 200 day average at around $310. Instead, the SPY pulled back only as much as $319.80. But as I mentioned on entry, this was also a hedge (to lower the overall delta a bit) against our other positions. Closing out this position here for a loss.
Trade Exit Details:
STC 1 SPY 02 Oct20 315 put
BTC 1 SPY 02 Oct20 310 put
For a min net credit of $0.15 per contract (day order, limit order). The mid is currently at a credit of $0.18 and I was filled at $0.17
Analysis:
Max Risk: $100
Max Reward: $400 or 400% with SPY at/under $310 by Oct 2nd
Profit Range: SPY at/under $313.90 by Oct 2nd
Commission (round trip): $2.60
Suggested Upside Stop at: $335.00
Realized Profit / Loss: ($80) or -84% (pre commisison)
