Below is a summary of the particulars of The SPY – Short Term Power Play Trades. The trades are initiated on either Monday or Wednesday.
Bullish – SRO-SPY Short Term Plays: Short a Wednesday or Friday ATM +1 call. Long Friday or Monday, ATM -1 call.
- Underlying Stock: Bullish or Neutral Market Edge Opinion – No Stock Position.
- Desired Stock Price Direction: Up.
- Maximum Risk: Initial debit amount.
- Summary: If stock closes at or above the short call strike price at expiration, either close the spread or close just the short call part of the spread and hold the long call until its expiration. (Win). If the stock closes below the short call strike price at expiration, close the spread (Possible Loss).
Bearish – SRO-SPY Short Term Plays: Short a Wednesday or Friday, ATM -1 put. Long Friday or Monday ATM +1 put.
- Underlying Stock: Bearish or Neutral Market Edge Opinion – No Stock Position.
- Desired Stock Price Direction: Down.
- Maximum Risk: Initial debit amount.
- Summary: If stock closes at or above the short put strike price at expiration, either close the spread or close just the short put part of the spread and hold the long call until its expiration. (Win). If the stock closes below the short put strike price at expiration, close the spread (Possible Loss).
This Week’s SRO-SPY Plays: Bull – Bear Trades
Bull – Bear SRO-SPY Plays, if any are posted on Monday and Wednesday 11:00 AM EST.
| Monday’s SPY Trades | Combined Risk Capital: | $10,000 | |||||||||
| Bullish – SRO/SPY Horizontal Trade | Friday Night’s | SRO–> | 5.22% | SRO < -4.00% = Bullish | (Oversold) | ||||||
| Market | Open | Short | Long | *Open | Max Dollar | % | % | ||||
| Open | Edge | SPY | 04/30/25 | 05/02/25 | Call Debit | Risk Per | Max Capital | Probability | Risk Capital | ||
| Symbol | Date | Opinion | Price | Wed. Call | Fri. Call | Spread | Spread | % Risk | Of Profit | Target | Max Return |
| NONE | 04/28/25 | Bullish | |||||||||
| Bearish – SRO/SPY Horizontal Trade | Friday Night’s | SRO—> | 5.22% | SRO > +4.00% = Bearish | (Overbought) | ||||||
| Market | Open | Short | Long | *Open | Max Dollar | % | % | ||||
| Open | Edge | SPY | 04/30/25 | 05/02/25 | Put Debit | Risk Per | Max Capital | Probability | Risk Capital | ||
| Symbol | Date | Opinion | Price | Wed. Put | Fri. Put | Spread | Spread | % Risk | Of Profit | Target | Max Return |
| SPY | 04/28/25 | Bearish | $550.73 | 548.0 | 552.0 | $3.36 | $336.00 | 3.4% | 57.8% | $6.72 | 6.7% |
| *It should be noted that to avoid assignment on short option positions, it is recommended that you close all option spreads prior to the close on expiration day. | |||||||||||
| % Probability Of Profit: The % of THE Spread returning at least $0.01 at the time of expiry. This figure is derived from 30-day Implied Volatility. | |||||||||||
Results for this week’s trades will be posted over the weekend on the Scoreboard.
The information contained herein has been carefully compiled from sources believed to be reliable, but its accuracy is not guaranteed. Past performance is not necessarily indicative of future results. Traders should read The Option Disclosure Statement before trading options. No representation is made that any account is likely to achieve profits or losses similar to those shown. Due to the possibility of human and/or mechanical error by The Optionomics Group LLC, Inc., its sources or others does not guarantee the accuracy, completion or availability of any information contained herein and is not responsible for any errors or omissions or for results obtained from the use of such information.