SPY ETF Trade
The July 4th Couch Potato SPY Risk Analysis mentioned "...the only risk is to our short puts. The SPY price has already dropped below our $104 short put. Technical indicators are flashing oversold conditions, but this situation can continue indefinitely before prices recover. We have enough time to wait a day or two to see if prices have bottomed or if there is a dead cat bounce..."
We got our "bounce" and are closing out the July
expiration put spread with a gain. July options expire next week and it is not worth the risk to try to extract the premium value remaining in this put spread.
SPY closed at $107.16 on Thursday
We are immediately closing out the July expiration put spread for an approx. $500 profit â€“ based on Thursday's closing price (see tables below)
Couch Potato Trader Disclaimer
All results reported in this section are hypothetical. While the numbers represented here may have been achieved or beaten by our readers, we make no representation that any individual investor achieved these exact results. The tracking for the plays listed in this section uses closing prices for the day the newsletter is published and it is not meant to imply that any reader actually received those prices (though many often do) or participated in these recommendations (even though many do). The portfolio represented here is hypothetical and for investment education purposes only. It is only an illustration of what type of gains a knowledgeable trader might receive utilizing these strategies. If you don't get close to these results, guess what. It isn't the fault of the strategies.