2013 SPX Trade 2

Looks like my -4 1560/1565 SPX call spread should expire this friday!  Today, I started to look forward to next week and started legging into my SPX credit spread that expires next week.  If you go back to my previous post, my max allocation is -4 contracts ($2000) per weekly spread.

SPX made a new 52 week high today at 1545+.   Its all time high is 1575.  It sits over 9%+ over its 200 day moving average.

Details of trade #2 (part I)

  • -2 1565/1570 SPX call spread
  • Credit of $105.92 after comissions
  • 10.59% return in little over a week. $105.92/$1000 margin = 10.59%.
  • The spread expires 3/15/2013 (Next Friday)
  • Delta of .13 at the time I entered the position.  This means this trade has a 87% change of success and 13% chance that the SPX will be above the 1565 level by next friday’s close.

Delta changes throughout the day, especially if SPX moves higher and higher to the 1565 level.  Means the probability is becoming higher and higher than the spread could go against you and be In The Money.

Second half of the trade I will enter either tomorrow or Monday depending on whether SPX makes another new 52 week high and takes out the 1550 level.ImageImage

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One response to “2013 SPX Trade 2

  1. great transparency! This really helps bring credibility that the new traders need to see when placing these types of orders. great job.

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