It was a decidedly bullish day for the market, as SPY made a run at 500. The day started with a large opening gap to the upside, taking SPY to 496.44. This was followed by a small move down to 495.40 where SPY once again moved higher, running up to 498.04. SPY then settled into a narrow trading range between about 497 on the downside and 498.53 on the upside, just shy of that 500 level. That narrow range held throughout the afternoon, with SPY closing at 498.10.
The initial move higher carried SPY right to the top of our +/-2 point target range, and quickly rose well above it.
Wednesday's Spread Combination was:
Long Bull Call Spread
Buy Open Feb 07 '24 495 Call @ $0.52
Sell Open Feb 07 '24 496 Call @ $0.27
Cost = $0.52 - $0.27 = $0.25
Long Bear Put Spread
Buy Open Feb 07 '24 493 Put @ $0.93
Sell Open Feb 07 '24 492 Put @ $0.58
Cost = $0.93 - $0.58 = $0.35
Total Cost = $0.25 + $0.35 = $0.60
We can see that the Long Bull Call Spread ran up quickly, and by 11:00 had reached our $0.85 sell price.
The Put Spread never became profitable after that, so our profit for today was $0.85 - $0.60 = $0.25.
Thursday's Spread Combination:
Long Bull Call Spread
Buy Open Feb 08 '24 499 Call @ $0.78
Sell Open Feb 08 '24 500Call @ $0.44
Cost = $0.78 - $0.44 = $0.34
Long Bear Put Spread
Buy Open Feb 08 '24 497 Put @ $0.64
Sell Open Feb 08 '24 496 Put @ $0.37
Cost = $0.64 - $0.37 = $0.27
Total Cost = $0.34 + $0.27 = $0.61
I set an initial sell order for each side at $0.85
I then monitor the 15 minute chart for technical sell signals.
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