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.