Alert: Open SPX Dragonfly

Ticker: SPX
Price: $4192.28
Date: 5/19/23 112:00 pM

Underlying: S&P 500 Index Fund

Est. Net Debit/Credit: $900 – $1320 credit

Master Portfolio Contracts: 6 (and 12)

NOTE:  Open SPX dragonfly. 

With the market being up and the VIX  down we’re having to go a little wider to get credits. I’m going with a 70/30 split today but leaving it out of the money so it has some room to move around in case the market reverses. This rally has been fairly rapid and unexpected. It is also being fueled by thinking the debt ceiling will be covered, but there are still a lot of variables.

Since these trades have been doing most of the lifting in 5K, we’re going to increase the margin to 25K this week.  The master portfolio will be trading six contracts but if you want to limit the margin you can decrease that.

Trade Detail:

BTO +6x SPX 2 JUN 4125 put
STO -12x SPX 2 JUN 4095 put
BTO +6x SPX 2 JUN 4025 put

Price: 1.50 – 2.15 credit  (Prices are wide!  Start with higher credit and work your way lower) 

Margin Required: $24,010