I had to adjust the trade on Monday after the continued bullish movement. So I have added a 82 calendar to push the breakeven further away. If price continues to trend higher this week, I'll cry UNCLE and just get.
3/23 STO 1 SPY 82 Apr/May Call $1.46
Total max risk is $1031.
Showing posts with label SPY bearish diagonal credit spread. Show all posts
Showing posts with label SPY bearish diagonal credit spread. Show all posts
Monday, March 23, 2009
SPY Bearish Diagonal Spread Update #1
Friday, March 20, 2009
SPY Bearish Diagonal Spread
SPY looks like it reached the top of the bullish run. Its time to place a neutral to bearish diagonal. If price settles below $78 on expiration there will be a minimum profit of $15 due to the credit. Potentially the trade can make up to ~$600 if the price settles at $78.
STO 3 SPY 78 April Call $3.70
BTO 3 SPY 81 May Call $3.65
Credit of $.05
Max risk is $885
Adjustment point will be when price reaches $79.5.
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