Quick Take: The SPY Bullish Power Play Trade
Time Frame: Three Days.
Underlying Index – SPY: Bullish Market Edge Opinion – No Stock Position.
Desired Price Direction: Up.
Option Position: Long Deferred ATM -1or -2 Call – Short Expiring ATM +1 or +2 Call.
Maximum Risk: Initial debit spread amount.
Summary: The index (SPY) performs as anticipated. The premium (air) is the short expiring call goes to zero while the long deferred call gains additional premium.
Quick Take: The SPY Bearish Power Play Trade
Time Frame: Three Days.
Underlying Index – (SPY): Bearish Market Edge Opinion – No Stock Position.
Desired Price Direction: Down.
Option Position: Long Deferred ATM +1 or +2 Put – Short Expiring ATM -1 or -2 Put.
Maximum Risk: Initial debit spread amount.
Summary: The index (SPY) performs as anticipated. The premium (air) in the short expiring put goes to zero while the long deferred put gains additional premium.
This Week’s SPY Power Play Trades
Bullish – Off-Strike Horizontal Trade | Risk Capital | $20,000 | |||||||
Market | Open | Short | Long | Open | 100% | % | |||
Open | Edge | SPY | 11/15/19 | 11/17/19 | Spread | Spread | Max | Risk Capital | |
Symbol | Date | Opinion | Price | Exp. Call | Def. Call | Debit | Target | Risk | Max Risk |
NONE | 11/18/19 | Bullish | 0.0 | 0.0 | $0.00 | $0.00 | $0.00 | 0.0% | |
0.0 | 0.0 | $0.00 | $0.00 | $0.00 | 0.0% | ||||
Bearish – Off-Strike Horizontal Trade | |||||||||
Market | Open | Short | Long | Open | 100% | % | |||
Open | Edge | SPY | 11/15/19 | 11/17/19 | Spread | Spread | Max | Risk Capital | |
Symbol | Date | Opinion | Price | Exp. Put | Def. Put | Debit | Target | Risk | Max Risk |
NONE | 11/18/19 | Bearish | $0.00 | 0.0 | 0.0 | $0.00 | $0.00 | $0.00 | 0.0% |
0.0 | 0.0 | $0.0 | $0.00 | $0.00 | 0.0% | ||||
Results for this week’s trades will be posted over the weekend on the Scoreboard.