And just like that, SPX is above 2100. The speed of this move is not something I’ve seen in years (2011)… I do think reversion is just around the corner but we need to adjust here.
Here’s the trade right now:
As planned here’s what we are going to do:
1. Close out the long calls for a profit:
Sell to Close SPX Jan 2160 Call @20.10
2. Roll the Put Side Higher for a credit
Buy To Close Dec 1870/1860 Put Spread @0.20
Sell to Open Dec 1970/1960 PUt Spread @0.80
3. Use the profits from both of those trades to roll the call side higher.
Buy To Close SPX Dec 2130/2140 Call Spread @4.70
Sell To Open SPX Dec 2160/2170 Call Spread @3.00
Do the trades in this order… if all the fills workout fine then there is no additional margin to this trade and the risk/reward remains similar to when we initialized it.
Here’s what the risk looks like after:
