Today's downward price gap presents an opportunity to exit the June Quarterly
end-of-month expiration SPY bear call spread.
SPY Position Update
SPY closed at $131.32 on Monday â€“ the June quarterly call spread is approx. $1,200 in the black
The June 6th Couch Potato published a June Quarterly end-of-month expiration SPY bear call spread
We will enter an order to simply buy back the $136 strike price call contracts (versus doing a spread order). The $141 long call has minimal value to offset the fees and commissions, plus you probably won't be able to sell it anyway (see tables below)
June quarterly options expire on Friday and as mentioned above we plan on immediately closing out all the SPY short call contracts.
TLT Position Update ---------------------------------------------------------
TLT closed at $126.84 on Monday
The June 21st Couch Potato published a July expiration TLT iron condor. However, the call spread side of the trade was not immediately available as Treasury bond prices pulled back the next day. Today's drop in stock prices lifted bonds and we were able to execute the published TLT bear call spread (see tables below). Those who have not had a chance to enter the call spread should consider initiating the trade below as a GTC (Good Till Cancelled) order. A submitted GTC order will be automatically executed by your broker at the preferred credit â€“ when that price is available. Generally, we don't prefer GTC orders because they remain in the broker's ordering system until you cancel it or it is executed according to the order parameters. If you submit a GTC order and don't closely monitor the market, a sudden price change can immediately convert the order into a losing trade right off the bat. However, there appears to be limited risk with submitting the GTC order for the TLT call spread.
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.