12/11/2022 Plan:
This week we return to an S&P 500 ETF, SPY (Ticker: SPY)
12/11/2022 Plan (continued):
- SPY – Sell Dec 23 410/415 call spreads for 0.55
- Prices are as of market close 12/9/2022, actual fill and strikes may differ depending on Monday’s open, post will be updated accordingly.
- All trades are for educational purposes and do not constitute advice
12/11/2022 Commentary:
SPY hit an intraday high of 410 on December 1st. This trade assumes we don’t exceed that value for the next couple of weeks. In down or sideways markets, I like to put on bearish position in the S&P 500. Discussed many times before, if I lose on these trades, the rest of my trades and overall portfolio tend to do quite well. If we continue to move sideways or down, I pick up a few extra dollars as a consolation.
Feel free to Reach out with questions on this or anything else!
12/12/2022 Entry:
Sold SPY Dec 23 412/416 call spreads for 0.51. With Inflation prints and Fed this week, one can be cautious until those pass. Size this and other trades accordingly.
12/18/2022 Update:
The SPY call spreads that expire this week are nearly worthless – trading at about 0.02. Take them off whenever you like and enjoy the healthy profit.
12/24/2022 Update:
The SPY call spreads expired worthless, bringing in a nice $51 of profit per put spread sold. With SPY having sold off quite a bit, this helps take the sting out of people’s mostly long portfolios. This was also a narrower spread, so I sold additional contracts while maintaining the same amount of risk.
