Thursday, May 21, 2015

Sold July$76/71 bull put spread on XLE

Of the 6 ETF candidates, SPY was at the top Bollinger bands. Since the bear call spread was against the trend, I decided waiting a bit more time for SPY trade. XLE had rebound in the last couple of days from lower Bollinger bands. I liked the bull put spreads which were following the slight uptrend for XLE since 4 months ago. The July short strike $76p of Delta 0.22 was above the low channel line acting a support and offered the July$76/71p spread a credit of $0.55, with 57 DTE. So I sold this vertical as my 2nd position in the portfolio. I still have enough margin for a 3rd position.

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