BREwmaster said:
FTAG 2000 said:
Bob Knights Liver said:
I sold one SPX put credit spread 4400/4415. I think we'll at least bounce off the 200 if we get there. Max pain for this OPEX is 4450. I think that helps keep this trade green at least until Wednesday
So you sold the 4415, bought the 4400? Just want to make sure I'm following you right.
sold for a credit, so he sold the more valuable one, the 4400, bought the 4415.
Puts, so the 4415 is the more valuable one. I sold that and bought the 4400. I actually opened two of these, one for $5.15 and one for $5.40. Max loss is $972.50 per credit spread ($1500-$527.5). My target is buying these back for $0.75 if we have a couple of chop or green days. That would give roughly 45% return versus the max risked capital.
If we break and hold below the 200 EMA, then I'll sell back for a loss instead of holding for max loss.
I haven't been as successful on these as I'd like to be, so it will be interesting to see how it works out.