SPY 400/394 Put Credit Spread - March 21 Expiry
Fill: 0.54 Credit
Strikes: 400/395
Max Risk: 500-54 = 446
This was an order that I had been sitting on all day, trying to hold myself back from reducing my target price. Ill be honest, I liked these strikes so I wanted the trade.
Reasoning:
1. Large move down today, attacking prior lows - This is jumping the gun a bit as I usually wait for some confirmation of an upward movement, but as I mentioned I liked the strikes and the 10% Margin of error on the SPY, something I dont get often with my trades unless IV is high.
2. Yellow line is the lowest we have seen in 2022, and this still provides a 5% cushion from there as well.
3. Capital Deployment - I have been sitting on my hands alot recently, but I need to get trades out there. The reality is that I have built in risk management into my strategy and taken this risk into account when I project yearly returns, this is great to do, but means that if I do not deploy the amount of capital that I plan to, I dont hit returns because there is already a loss cushion built in. Currently around 20% deployed, and I should be at 34% as per my trading plan.
Questions? Comments? Leave them below!
Strikes: 400/395
Max Risk: 500-54 = 446
This was an order that I had been sitting on all day, trying to hold myself back from reducing my target price. Ill be honest, I liked these strikes so I wanted the trade.
Reasoning:
1. Large move down today, attacking prior lows - This is jumping the gun a bit as I usually wait for some confirmation of an upward movement, but as I mentioned I liked the strikes and the 10% Margin of error on the SPY, something I dont get often with my trades unless IV is high.
2. Yellow line is the lowest we have seen in 2022, and this still provides a 5% cushion from there as well.
3. Capital Deployment - I have been sitting on my hands alot recently, but I need to get trades out there. The reality is that I have built in risk management into my strategy and taken this risk into account when I project yearly returns, this is great to do, but means that if I do not deploy the amount of capital that I plan to, I dont hit returns because there is already a loss cushion built in. Currently around 20% deployed, and I should be at 34% as per my trading plan.
Questions? Comments? Leave them below!
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