Stock / Symbol: S&P 500 ETF / SPY
Strategy: Vertical Put Spread
Trade entry date / price: 12 Jan 2020 / $379.10
Price at this post: $380.75
Reasoning: Technically, SPY has reversed course is now indicating that it could continue higher for a while longer. So, rather than hope it works out, I'm just going to admit the timing was off and exit the trade here for a loss. Additionally, it's hard for me to hang onto a negative Theta position, where time is the enemy, not the ally, when I've lost conviction in the initial premise. The current Greeks are: -11.5 Delta, -3.2 Theta, and 8.0 Vega.
Trade Exit Order:
STC 1 SPY 29Jan21 370 put
BTC 1 SPY 29Jan21 360 put
For a min net credit of $1.05 per contract (GTC order, limit order). The mid is currently at a credit of $1.10. I was just filled at $1.10
Analysis:
Max Risk: $155
Max Reward: $845 or 545% with SPY at/under $360 on Jan 29th
Profit Range: SPY at/under $368.25 at market close on Jan 29th
Estimated Commission (round trip): $2.60
Realized Profit/Loss: ($39) or -26% (pre commission)
