In the chart below, I entered my trade in the green circle and exited at the red circle.
The result was I collected $1,200 even though I was expecting the S&P to go down slightly, instead it went up slightly– still made money because my break even was around $2093.
My Part 2 Trade
Now, since I didn’t sell my dec04 212.5 call yet, and I believe we are closer now to actually falling– I will continue with part 2 of this diagonal spread trade– which is simply me shorting the 210 dec04 call, creating a traditional vertical call spread at 210/212.5.
Since I’m fairly confident in this trade based on my detailed wave pattern analysis, I have increased my position size from 25 contracts to 35 contracts.
Here are my fills for the 210/212.5 call spread @.85
At 4pm EST, here’s what my trade looks like on my phone.
Meanwhile the 212.5 call is down 600 out of possible $1200.
What This Means
So there’s a lot more room for the 210 call to make money between now and Friday– as long as SPY stays below break even around 210.8— but ideally below 210 where I expect to make $2,700.