An opening gap to the downside greeted the market this Monday morning, with SPY falling to 492.88 in the opening minutes. A rally attempt to close the gap failed, and the drop continued until 10:45 with SPY finding a low at 490.23. Another rally attempt started off that low and lasted until nearly 3:00 when SPY found itself at 494.17. This nearly closed the opening gap, but that was not to be as SPY drifted lower in the final hour, closing at 492.55
The Delta Price chart shows the initial fall, with SPY down more than a point, and then falling to a loss of nearly 4 points, more than our +/-2 point target range. SPY then recovered to near breakeven before falling back to a loss of just under 2 points.
Our Spread Combination was:
Long Bull Call Spread
Buy Open Feb 05 '24 495 Call @ 0.99
Sell Open Feb 05 '24 496 Call @ 0.61
Cost = $0.38
Long Bear Put Spread
Buy Open Feb 05 '24 494 Put @ 1.23
Sell Open Feb 05 '24 493 Put @ 0.83
Cost = $0.40
Total Cost = $0.38 + $0.40 = $0.78
When SPY fell to a nearly 4 point loss, we see our Long Bear Put Spread was trading well above the $0.85 initial target where it was closed out.
Our profit for the day was $0.85 + $0.05 - $0.78 = $0.12.
Tuesday's Spread Combination:
Long Bull Call Spread
Buy Open Feb 06 '24 493 Call @ $0.94
Sell Open Feb 06'24 494 Call @ $0.57
Cost = $0.94 - $0.57 = $0.37
Long Bear Put Spread
Buy Open Feb 06 '24 492 Put @ $0.86
Sell Open Feb 06 '24 491 Put @ $0.51
Cost = $0.86 - $0.51 = $0.35
Total Cost = $0.37 + $0.35 = $0.72
No comments:
Post a Comment