Yesterday I opened 9 spreads with the following setup:
Underlying: SPX
Initial Premium Paid (per spread): 22.62 db
Total Cost: $20,358
Position Details at Entry:
- Short Put (Jul 23, 6265) – 9 contracts @ 4.72 cr
- Short Call (Jul 23, 6365) – 9 contracts @ 3.33 cr
- Long Put (Jul 28, 6265) – 9 contracts @ 14.96 db
- Long Call (Jul 28, 6365) – 9 contracts @ 15.72 db
Today I closed the position at: 23.60 cr
Profit: $882 (+4.3%)
Reflection:
I stuck with my plan to hold overnight, despite the gap risk. The position moved favorably by the morning, giving me a chance to close with a decent gain.
This was a textbook example of theta decay working in my favor.
After few hours later ….
I opened 10 spreads with the following setup:
Underlying: SPX @ 6313
Initial Premium Paid (per spread): 21.45 db
Total Cost: $21,450
Position Details:
- Short Put (Jul 24, 6255) – 10 contracts @ 5.65 cr (Current: 5.85 db)
- Short Call (Jul 24, 6360) – 10 contracts @ 4.15 cr (Current: 3.85 db)
- Long Put (Jul 29, 6255) – 10 contracts @ 15.82 db (Current: 16.30 cr)
- Long Call (Jul 29, 6360) – 10 contracts @ 15.43 db (Current: 15.10 cr)
Current Market Premium: 21.70
Plan:
Holding this trade overnight in line with my strategy — aiming to capture theta decay unless one of the short deltas hits 0.70, or exiting at the end of the 2nd day.
This will be my second overnight hold this week under the updated plan.⚠️ Disclaimer: This is my personal trading journal, shared for educational purposes only. Nothing here is financial advice or a recommendation to buy, sell, or trade. Please do your own research and understand the risks before making any trading decisions.
⚠️ Disclaimer
This blog is for educational and documentation purposes only. It reflects my personal trading journey and is not financial advice. Options trading involves significant risk and is not suitable for all investors. Strategies discussed may not be appropriate for your situation. Past performance does not guarantee future results. Please do your own research or consult with a licensed financial advisor before making any investment decisions.