$SPY BULL short put spread 90% PoP, 20% profit #options #option

After a beartrap switched back to bullish view with large ETF-s.
First of all: SPY

Max profit: $204
Probability for 50% of Profit: %90
Profit Target relative to my Buying Power: 20%


Req. Buy Power: $996 (max loss without management before expiry, no way to let this happen!)

Expiry: 22 days


Buy 3 SPY Jul16' 420 Put
Sell 3 SPY Jul16' 416 Put

Credit Put spread for 0.68cr each.


Stop/my risk management: Closing immediately if daily candle is closing BELOW the box, max loss in my calculations in this case could be 350$.

Take profit strategy: 65% of max.profit in this case with auto sell order at 0.24db.

Of course I'll not wait until expiry in any case!



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Trade closed: target reached:

Closed at original 65% profit target.