Bull put spread for next week!
1/2 position -2 SPX1490/1485 put spread
.30 gross credit per contract
No additional margin. Will create an iron condor along with our 1605/1610 call spread
Reasonings behind the spread:
Bad job numbers today but SPX 50 still rising upwards. It’s currently @ about 1530.
-2.5% below 1530 = 1491.75
Our spread is @ 1490. So not only SPX 50 day has to be breached next week, it will also have to slice right through it for another -2.5% before it hits our strike.
Odds are that a weak bounce will occur at spx 50 day MA that should last a few trading sessions.
This trade expires in only 5 trading days. So time is on our side.
Good luck to everyone!