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Quant Trader
Expert-Level Options for Sophisticated Traders

October 27, 2023

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.

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.

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.