Rocket - SPY Credit Call Spread 01-11-21
New Options Trade - SPY Jan 15th Credit Call Spread
Both options expire Friday January 15th.
Selling a Jan 15th $384 SPY Call
Buying a Jan 15th $385 SPY Call
This should result in a net credit of about $0.30. Our max profit is $30 per contract if the SPY closes Friday below $384. This is a bearish trade and we are risking $0.70 or $70 per contract if the SPY closes above $385 by Friday. The SPY is currently trading at $380.17.
I see more risk to the downside in the general market right now than to the upside right now with all the expectations of a bright future already priced in. A consolidation is what we might see for a while, no one wants to miss out, yet expectations are already priced in of the vaccine eventually overcoming COVID-19.
Selling a Jan 15th $384 SPY Call
Buying a Jan 15th $385 SPY Call
This should result in a net credit of about $0.30. Our max profit is $30 per contract if the SPY closes Friday below $384. This is a bearish trade and we are risking $0.70 or $70 per contract if the SPY closes above $385 by Friday. The SPY is currently trading at $380.17.
I see more risk to the downside in the general market right now than to the upside right now with all the expectations of a bright future already priced in. A consolidation is what we might see for a while, no one wants to miss out, yet expectations are already priced in of the vaccine eventually overcoming COVID-19.
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