Market's up 4.5% in a 5 day period, that doesn't happen often and it means we are overbought here.
I expect sideways action so we want to look at bear call spreads instead of a put buy strategy.
Here's the trade:
SEll to open SPX Oct 2020/2025 Bear Call Spread @0.80
Add to the trade at 1.20 and 1.70
All out at 0.10
The bid/ask spreads are stupid wide so make sure you use limit and not market orders.
Update 10/5/15: Filled 0.90
Update 10/5/15: Filled 1.30, Bidding to Close at 0.90
Update 10/7/15: Filled 1.70, will close out third add at 1.30
Update 10/7/15: Nice Dip In the Market. Closing out third round at 1.20
Update 10/7/15: Exiting second round at 0.80. Will re-add 2nd tier at 1.40 and 3rd tier at 2.00
Update 10/7/15: Filled on 2nd tier again at 1.40, will close at 1.00
Update 10/8/15: Bidding 1.00 on 2nd tier on open... filled.
Update 10/14/15: Out Original round at 1.00. I'm *completely* out of all tiers, will wait for a squeeze higher to re-initiate.
Margin Calculation (3 spreads per tier):
Tier 1: 1260
Tier 2: 1110
Tier 3: 990
Max Margin: 3360
Profit Calculations
Tier 1: Enter at 0.90, Exit at 1.00. Loss of 30
Tier 2: Enter at 1.30, Exit at 0.80. Gain of 150
Tier 3: Enter at 1.70, Exit at 1.20. Gain of 150
Tier 2: Enter at 1.40, Exit at 1.00. Gain of 120
Total Profits: 390.