This morning's open allowed our SPX Put Credit Spread to reach the target zone; the closing order for .20 to close the spread filled at approximately 10:10 am. SPX was trading at 1844.77 when my order executed. Some more aggressive traders may choose to stay in the position until the debit to close the spread reaches.15. However, I felt it wasn’t worth the added risk of a move against the position with only 2 days left in the cycle.

Our gain on this position was $60 before commissions, or 6.5% of the margin/risk.

The next trade entry will be Thursday, January 23, as long as market conditions are within the guidelines. As of this writing, the EMA is at 1833.24, so unless there’s a significant pullback, the weekly trade entry for the January 5 cycle will likely be a put credit spread. Details on trade entry will be posted when the position is opened.

Stay keen on your risk management and trade carefully,

Dot Hazlin