Cabot Options Institute Quant Trader – Alert (SPY)
SPDR S&P 500 ETF (SPY)
We sold a SPY November 17, 2023, bear call spread in late September for $0.74. It’s now worth roughly $0.03. A week later we initiated a SPY November 17, 2023, bull put spread for $0.58, essentially legging-in to an iron condor.
Since we are now being tested on the put side of the iron condor and our bear call side is essentially worthless (good thing) and offering no downside protection, let’s buy back our SPY bear call spread and lock in a nice profit.
There is a good chance that I send a follow-up trade alert to balance out our deltas, so I will most likely be adding another bear call spread. Stay tuned!
The Trade
Simultaneously:
Buy to Close SPY November 17, 2023, 452 call strike
Sell to Close SPY November 17, 2023, 457 call strike for a total of $0.03. (As always, the price of the spread will vary, so please adjust accordingly.)
As always, if you have any questions, please feel free to email me at andy@cabotwealth.com.