December 15, 2022

Cabot Options Institute Quant Trader – Alert (SPY)

We’ve had lots of good fortune over the past six months in the Quant Trader service. Our quant-based approach where probabilities lead the way has led to 18 out 19 winning trades since starting the service back in early June.

Today I want to lock in another winning trade by taking off our most recent trade in SPY. Two days ago we sold the SPY 430/435 bear call spread for $0.54. Now the spread is trading for far less, around $0.17. With 36 days left until expiration it doesn’t make sense to hold on to the trade given the associated risk. As a result, I’m taking off the trade and will immediately begin the search for another good candidate for a trade. If you choose to hold on to the trade for greater profits, please be aware of the risks.

The Trade

Simultaneously:

Buy to Close SPY January 20, 2023, 430 call strike

Sell to Close SPY January 20, 2023, 435 call strike for a total of $0.17 (As always, the price of the spread will vary, so please adjust accordingly.)

Andy Crowder

Andy Crowder is a professional options trader, researcher and Senior Analyst at Cabot. Formerly with Oppenheimer & Co. in New York, Andy has leveraged his investment experience to develop his statistically based options trading strategy which applies probability theory to option valuations in order to execute risk-controlled trades. This proprietary strategy has been refined through two decades of research and real-world experience and has been featured in the Wall Street Journal, Seeking Alpha, and numerous other financial publications. Andy has helped thousands of option traders learn and implement his meticulous rules-driven options trading strategies through highly attended conferences, one-on-one coaching, webinars, and his work as a financial columnist. He currently resides in Bolton Valley, Vermont and when he’s not trading, teaching and writing about options, he enjoys spending time with his wife and two daughters, backcountry skiing, biking, running and enjoying all things outdoors.