I'm layering these on with a particular price zone in mind between the .236 and .764 shown on this SPX 500 chart, but giving myself a bit more leeway to the downside from the outset. I can always delta balance the setup on the fly by rolling the short put side up a little bit within the same expiry as the trade progresses.
March 4th SPY 180/184/203/207
Probability of Profit %: 62%
Max Profit: 1.04/$104/contract
Buying Power Effect: 2.96/$296/contract
Break Evens: 182.96/204.04
March 4th SPY 180/184/203/207
Probability of Profit %: 62%
Max Profit: 1.04/$104/contract
Buying Power Effect: 2.96/$296/contract
Break Evens: 182.96/204.04
Comment:
Cancelled. Going to wait to see how market digests Jan month-end up move.
Comment:
With the market virtually flat today, went ahead and put this on for a 1.02 credit. Will look to take it off at 50% max profit.
Comment:
The original setup was actually a 178/182/201.5/205.5 for which I received a 1.02 credit. And then proceeded to roll the 201.5/205.5 down to the 193.5/197 for an additional .50 credit and eventually closed out the 178/182 short put side for a .10 debit, leaving me with the 193.5/197 short call spread that expires this Friday. I will look to roll that out to the April 15th expiry, 198/202 short call spread for a small debit tomorrow (it's looking right now like something between .03 and .05), after which I'll proceed to sell and short put spread against.