Stock / Symbol: S&P 500 ETF / SPY
Strategy: Bear Call Spread
Trade post date / price: 29 Mar 2023 / $399.70
Price at this post: $411.70
Update / Reasoning: As we're at the 3-week time stop planned for this trade, I'm going exit the position today. Although SPY is up over 11 points from where it was at position entry, the mid-trade adjustments have yielded a winning trade. The realized profit per contract on the adjustment was $0.75. If filled at the debit specified below, the loss on the bear call spread will be $0.20 per contract, leaving a net profit of $0.55 per contract. For reference, the current net position Greeks are: -7.6 Delta, -0.3 Gamma, 1.7 Theta, and -10.8 Vega.
Trade Exit Order:
BTC 1 SPY 16Jun23 430 call
STC 1 SPY 16Jun23 435 call
For a max net debit of $1.10 per contract (GTC order, limit order). The mid is currently at a debit of $1.12. I have not yet been filled.
Analysis:
Max Risk: $635
Max Reward: $140 with SPY under $430 on Jun 16th
Profit Range: SPY under $431 on Jun 16th
Estimated Commission (round trip): $3.90
Anticipated Profit / Loss upon fill: $55 or 8.6% (pre commission)
