May 2, 2023

Cabot Options Institute Quant Trader – Alert (SPY)

SPDR S&P 500 ETF (SPY)

Okay, it’s time to take some profits. Albeit on the small side, I’ve decided to lock in profits in our SPY iron condor and look to sell another iron condor after the Fed announcement tomorrow. Basically, I want to stay nimble here, especially when profits can be taken. If you wish to hold on to the trade, please be aware of the risks.

We still have 45 days left until the June 16, 2023, expiration cycle ends, so taking profits now will allow us to sell even more premium in June. And if we see a bump in implied volatility tomorrow, we should be able to sell another iron condor at decent prices while still maintaining our 85% to 90% probability of success.

We continue to see success in the Quant Trader service with a win ratio of 27/31 (87.1%) and a total return of just under 130%.

The Trade

Simultaneously:

Buy to Close SPY June 16, 2023, 435 call strike
Sell to Close SPY June 16, 2023, 440 call strike
Buy to Close SPY June 16, 2023, 365 put strike
Sell to Close to Open SPY June 16, 2023, 360 put strike … for a total of $0.63. (As always, the price of the spread can vary from the time of the alert, 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.