Option Spread Combination Analysis 02/14/2024

 Our Option Spread Combination going into the day was:

Long Bull Call Spread
Buy Open Feb 14 '24 495 Call @ $1.13
Sell Open Feb 14 '24 496 Call @ $0.75

Cost = $1.13 - $0.75 = $0.38

Long Bear Put Spread

Buy Open Feb 14 '24 493 Put @ $0.99

Sell Open Feb 14 ' 24 492 Put @ $0.71

Cost = $0.99 - $0.71 = $0.28

Total Cost = $0.38 + $0.28 = $0.66

The late afternoon rally from Tuesday, during a decidedly bearish day, continued at the open this morning, with SPY gapping up to 497.30, and continued higher to 497.99 by 10:30.

By this time our initial sell target of $0.85 for the Long Bull Call Spread was reached, and that spread was closed out.

We can see on the Delta Price chart that after that initial run-up, SPY underwent a pullback back near breakeven just after noon.

The 15 Minute Chart continuing to look bullish during the pullback, with RSI(5) dipping below 50 with a bullish MACD.

We were able to close out the Long Bear Put Spread @ $0.10.

Our profit for the day was $0.85 + $0.10 = $0.95 -$0.66 = $0.29.

Our Option Spread Combination for Thursday is:

Long Bull Call Spread

Buy Open Feb 15 '24 499 Call @ $1.39

Sell Open Feb 15 '24 500Call @ $0.88

Cost = $1.39 - $0.88 = $0.51

Long Bear Put Spread

Buy Open Feb 15 '24 498 Put @ $0.80

Sell Open Feb 15 '24 497 Put @ $0.53

Cost = $0.80 - $0.53 = $0.27

Total Cost = $0.51 + $0.27 = $0.78

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