VIX6 – SPX Trade #5 Update #1
Good day again Insiders,
Recall we placed the sale of the call spread in the SPX set to expire on March 15th, 2019. As price action was looking weak, I sent out an update saying that it made sense to take advantage of the weakness the market was showing as we could not close above 2800 for a second day. It is time to lock in a bit of profit on the trade. We sold the 2835-2845 call spread for 1.45 and were filled for a 1.60 credit. At the time of this update, the SPX is down -15 points at 2774. Though I am not overly bullish or bearish yet, anything is possible and protecting our money is always objective number one.
We are going to buy 5 contracts of the 2825-2835 call spread for 1.20. This will lock in a profit should the market sit here or move lower, and in the event the market rallies, we have less risk on the table and a huge profit between 2825 and 2835.
Risk & Reward
Placing this adjustment locks in a $1,000 profit if the market sits here or moves lower and if the market bounces we have profit all the way to 2840.