Option Investor
Updates

SURE THING ADJUSTMENT

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OK, it's time to switch gears on our SPX February Sure Thing Credit Spread. We saw it coming.

A little while ago we liquidated the 1275/1300 bear call spread for a debit of $14.10 x two contracts = $2,820.

We then initiated a February 1280/1255 bull put spread for $6.90 x 4 = $2,760. Notice, we traded four contracts to replenish the $2,820 we spent to close out the original bear call spread.

Our maintenance is now $10,000 (4 x $2,500). Now we get to root for the market to continue up.

Good luck and trade smart.

Mike

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