SPY Earnings Season Kick Off !! The trade I'm in its a bearish trade using a Debit Put Spread to keep THETA under control and hold the spikes if any. SPY -100 X FEB 17 / 36 DTE / 370 PUT (SELL LEG) +100 X FEB 17 / 36 DTE / 380 PUT (BUY LEG)
MAX LOSS = -$14,900 MAX PROFIT = +$85,100
*The goal / target is to collect at least 65%-70% of max profit around +$55,000 - When you use this strategy your MAX LOSS is capped, so even if SPY jump 100% the MAX LOSS is the SPREAD that I already PAID, so all we can do is HOLD and see if SPY during this 36 days can pull back to test the lows or just stay under $378.50 by Expiration Day for BE.
Trade closed manually
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Closed +50% of the position after the open for nice profits. I want to see a close below ES 3917 / SPY 388/389
@dsecondiani, the term VERTICAL SPREAD can be used for DEBIT or CREDIT, BULLISH or BEARISH. Bull call spread: (debit) Bear call spread: (credit) Bull put spread: (credit) Bear put spread: (debit)
So The VERTICAL PUT SPREAD to be the same as my trade you would have to chose the BEAR "VERTICAL" PUT SPREAD.
dsecondiani
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@IronMan_Trader I didn’t see bear put spread option it only says vertical put spread and vertical call spread on ameritrade
dsecondiani
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So I’m assuming that’s same thing correct
IronMan_Trader
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@dsecondiani, NO ... VERTICAL SPREAD = TRADING THE SPREAD, If you go with the PUT SIDE, you have to also chose the way you will build it as BEARISH or BULLISH !! playing the PUT SIDE for a DEBIT you are BEARISH, playing the PUT side for a CREDIT you are BULLISH.