[CLOSED] – Retracement Spread Sales in SPX

Here’s the current chart of the SPX:

The study on the bottom is a 5 day rolling returns study. It shows that the S&P is down jsut under 3% over a 5 day period, and that is oversold over the short term.

Is it possible that the SPX continues to selloff from here? Sure. But is is probable? No. This sets us up for another spread sale trade.

Here’s the spread I’m going to be trading:

Aug1 2020/2015 Bull Put Spread

These options expire in 11 days. So not this week’s options, but next week’s options.

Just like the other SPX spread sales I’ve done, I will be scaling in and out aggressively.

Here’s how I’ll trade it:

Sell to open @0.90, close at 0.40

Add to trade @1.30, close at 0.90

Add to trade @2.00, close at 1.50

So if I get filled on an add and can close that add for a profit, I will then look to reenter.

Update: Jul 28th, 2015

Bidding to close first round at .30

Will Re-open at 1.00

Margin and P/L

Per Spread: Credit 0.90, Risk 410

Returns: 0.60 per spread, 14% RoR

U.S. GOVERNMENT REQUIRED DISCLAIMER – COMMODITY FUTURES TRADING COMMISSION. FUTURES AND OPTIONS TRADING HAS LARGE POTENTIAL REWARDS, BUT ALSO LARGE POTENTIAL RISK. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THE FUTURES AND OPTIONS MARKETS. DON’T TRADE WITH MONEY YOU CAN’T AFFORD TO LOSE. THIS WEBSITE IS NEITHER A SOLICITATION NOR AN OFFER TO BUY/SELL FUTURES OR OPTIONS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED ON THIS WEBSITE. THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN

Update: Jul 28th, 2015

Margin and P/L

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