Quick Update on SPY Options Idea
November 11, 2022
By Scott Redler
I'm on the road but wanted to share a quick update on the SPY options strategy I shared on Wednesday.
If you recall, I put on two positions simultaneously:
- Long SPY $377/$369 put spread (long the $377 and short the $369)
- Long SPY $383/$391 call spread (long the $383 and short the $391)
The idea was that if SPY was above $391 or below $369 at today's close when the options expire, the trade would hit maximum profit.
The market spiked on yesterday's CPI report, and SPY is right around $395 right now.
The put spread is worth $0.
But the call spread is now worth about $7.20, enough for a nice gain.
The reason it's not at $8 is that the options still have some premium to burn off.
As long as SPY is above $391 today, the call spread should be worth nearly $8.
I'd make sure to lock in the profit at some point today if you took the idea.
Do not let it fall into the red. This is still a bear market and you never know - if things turn south this trade could go from win to loss.
Hope you have a great weekend!
Scott Redler Positions Disclosure as of 2022-11-11 at 9.43.20 AM