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Quant Trader
Expert-Level Options for Sophisticated Traders

December 6, 2022

Cabot Options Institute Quant Trader – Alert (SPY)

I’m going to lock in some nice profits today and as a result, our win ratio is now 18 out of 19 winning trades since starting the service back in June. I’ll also be adding a few new trades to the mix over the next day or two, so be on the lookout for an opening trade alert.

SPDR S&P 500 (SPY) – December 16, 2022, 420/425 Bear Call Spread

With only 10 days left until the December 16 expiration and the ability to lock in well over 50% of the original premium sold, I’ve decided to lock in some nice profits. If you choose to hold on to the trade, for the opportunity of greater returns please be aware of the risks.

The Trade

Simultaneously:

Buy to close SPY December 16 2022, 420 call strike
Sell to close SPY December 16, 2022, 425 call strike for a total of $0.14 (As always, the price of the spread will vary, so please adjust accordingly.)

SPDR S&P 500 (SPY) – January 20, 2023, 435/440 Bear Call Spread

We just placed the trade five days ago, but with 45 days left until the January 20, 2023, expiration and the ability to lock in well over 50% of the original premium sold, it just doesn’t make sense to hold on to the trade. We can always reestablish a bear call spread and will when it makes sense. I’ve decided to lock in some nice profits. If you choose to hold on to the trade, for the opportunity of greater returns please be aware of the risks.

The Trade

Simultaneously:

Buy to close SPY January 20, 2023, 435 call strike
Sell to close SPY January 20, 2023, 440 call strike for a total of $0.18 (As always, the price of the spread will vary, so please adjust accordingly.)

Andy Crowder is a professional options trader, researcher and Chief Analyst of Cabot Options Institute. 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.