SPY Position Update
The March 21st Couch Potato published an April SPY Iron Condor trade and mentioned "...we probably will need to do separate orders for the calls and puts to get an acceptable credit for the call spread. The credit amount in the bear call spread table above is the minimum we need to accept at this point (there is time left before April expiration to try again if we can't get a good price)... we can use the intraday resistance level to get a better credit on the call spread..."
The 50-day SMA (approx. $130) is now acting as resistance and the recent price rally thus far has stalled at that level (see 15 minute chart down below)
Prices usually don't break through resistance on the first try and the call spread was not available today. Over the next few days we will keep trying to do the bear call spread - if the SPY pushes through resistance we should be able get our minimum credit (if not higher).
We want the SPY Bear Call spread short strike to exceed defined resistance levels :
$134.00 calculated based on previous intraday highs and technical resistance levels
$134.00 equals the upper price level of our 80% statistical probability range
$134.00 is the upper level of the Bollinger
20 contracts traded on each leg (number of contracts can be increased or decreased based on risk tolerance and/or funds available to trade; this will impact Total Premium Received, Maximum Risk amount, and Margin Required)
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