Good day Insiders,
Well, we got our bounce and finally went above 2900 in the SPX. At the time of this update, we are seeing profit taking and are hovering right at the 2900 level. It is time to take the profit here. Recall we placed the sale of the 2900-2895 put spread for 3.90 credit. At the time of this update, it is going for 1.30 and though it is not the max profit on the trade, I am more than happy with a $5,200 profit for Friday!
We will close out the trade by buying back our short put spread here for 1.30
Risk & Reward
Recall we sold the spread for 3.90 and are buying it back now for 1.30, which gives us a profit of 2.60. Using the contract quantity and the 100 multiplier that options carry. We are looking at a $5,200 gross profit, and a net of $5,100 (very conservative) after commissions.