Been a long time since my last post. Starting today I will be posting all of my SPX trades in 2013. All of the trades will have the following parameters:
- Focus only on the SPX (Sp500 index)
- Credit Spreads
- 4 contracts per spread
- $2000 margin per spread (each contract uses up $500 in margin)
- target 2-5% return a week on $2000 margin.
- Delta of .15 or below (Delta is the probability of the spread going against me and being In The Money)
- 1560/1565 call spread for a gross credit of $120 before commissions and fees.
- $111.86 Net profit, after commissions & fees, in 3 days
- 111.86/2000 = 5.59% net return in 3 days
- Trade has a 92% chance of success and expiring Out The Money
- Trade is a win IF SpX closes below 1560 on Friday, March 8th.