SPY 410/405 March 4th - Put Credit Spread

Trade Credit: $0.56 = 11.2% Return on Margin
Max Loss = 500 - 56 = $444
Strikes - Short 410 / Long 405

Reasoning:
1. Large friday afternoon drop, which I believe is somewhat expected due to the good week we have been having.
2. White lines indicate the current trading range A.K.A Support and Resistance
3. Yellow Dotted line = Recently low and becomes a MUST for me to be below in order to take this trade.

410/405 Pays >10% return on margin and is below the recent low, so I took the trade.

Usual management is 50% take profit or -200% Stop loss. Given that I entered this on a downward move, I went half size and may add additional positions later if the RoM (return on Margin stands).

Questions? Comments? Leave em below!

Comment:

This trade was exited today for 0.29 per contract, a little above below the 50% profit threshold, but I wanted to take advantage of the pop from the fed minutes.

Closed for 48% profit, or 4.8% return on capital risked in just 5 days. Rinse and repeat!