Wednesday, June 3, 2015

Sold SPY July$202/197 bull put spread

I have a general bias towards a slightly up-trending market as shown in the SPY diagram below. Today, I felt the SPY had pulled back for 7 days and was about to rise again. After looking at the SPY July$202/197p which had its short strike Delta of 0.2 and 44 DTE with a satisfactory credit of 0.56, I decided to use my last power for the portfolio to entry this bullish position. The short strike $102 is below the 200DMA and other support levels as shown in the diagram.

My two other positions on XLE & IWM are behaving normally at the moment. Now my portfolio is fully positioned and my task will be managing the existing positions in the remaining days of the July option cycle based on my trading plan.

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