NaughtyPines
Short

TRADE IDEA: SPY OCT 19TH 233/235 LONG PUT VERTICAL

AMEX:SPY   SPDR S&P 500 ETF TRUST
Risking one to make one at all time highs in a low volatility environment ... .

Metrics:

Probability of Profit: 52%
Max Profit: 1.01 ($101)/contract
Max Loss/Buying Power Effect: .99 ($99)/contract
Break Even: 294.01
Theta: .10
Delta: -10.1

Notes: If it fills, it fills ... . Will look to take profit at 50% max.
Sep 20
Comment: Now that I think about it, will probably go with the same spread in the November cycle. More time to be right, along with possible jitters surrounding mid-term election uncertainty: the same spread in November costs a touch less at .84/contract, with a 1.16 max and a break even of 294.16.
Sep 21
Comment: Filled on the Nov 293/295 long put vertical for .82/contract at the open ... .
Sep 28
Trade closed manually: Covering here for a 1.03/contract debit, .21 profit/contract (25.6% ROI).
I am new to options trading. I am long qqq 182 PUTS myself.

You bought 295 ITM PUTS and sold 293 OTM PUTS for a net debit?

If the market goes further lower won't you make more if you had just went with the 295 PUTS?
Reply
@rox2018, It's possible, depending on what happens with the underlying. The short aspect caps out max profit, but also limits max loss in the event that I'm totally wrong.
Reply
rox2018 NaughtyPines
@NaughtyPines, I noticed you exited your trade @25% return. Is 25% a automatic exit area for you and Do you find that to be a optimum exit point? Thanks
Reply
@rox2018, Generally, short puts/calls or short put verticals/short call verticals, I shoot for 50% max. I may have exited early to cut overall long delta/delta balance.
Reply
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