$SPX - Daily Credit Spread 12/5/2022 + $1600

Dec 05, 2022

Today I executed on $4000/$3950 put spread on $SPX at 10:18 am for a $2.10 credit. 

I bought back at .50 and hour later. 

$2.10 - $.50 = $1.60 X 10contracts(x100)= $1,600 profit

 

Checkout the orders. (This shows entry and exit times)

 

Checkout the closed position results. 

 Typically we like to let these trades expire to collect the rest of the premium, but as you can see below from our entry/exit we were able to capitalize very quicky. ...

What would have happened if I held till the end of the day? 

As you can see $SPX closed below our tested strike, therefore our position was tested, and is still holding extrinsic value because it is now consider ITM (In the Money). 

 

Below you can see that the contracts we sold in the credit put spread are trading at market price at $1.60. 

If we held this position all day we would have incurred a significant P/L OPEN fluctuation as our position was being tested. 

With our initial credit of $2.10 our breakeven would have been:

$4,000 put strike - $2.10 credit received = $3977.90

*** Please not any "selling" strategies involves substantial risk and price fluctuations.  

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