Actually, it didn’t even need to drop by that much. Basically, the SPY (S&P500 ETF) reached up towards 210 at like 6am this morning and then dropped from 210 down to 205, and is now hovering at 206.
Our bet was that SPY would close below 210 by Friday 4pm EST expiration time. As long as SPY closes below there, we will realize our maximum $2,700 in profits from this trade.
Today Thursday, it dropped so much that, our gains are already at $2,600 out of the maximum $2,700.
Here’s my position
As mentioned before I have 35 contracts in each one.
And if SPY stays below 210 by any amount by tomorrow’s close, we won’t even need to pay any closing commission costs!
Based on our analysis, we predicted that we completed the B-wave (posted yesterday) — and that we are now moving down. So we believed our trade is very likely to work out. In fact, we increased our size from 25 contracts up towards 35 contracts to reflect this confidence.
Well, today’s drop was what we were anticipating — glad it worked out!
Oh and I forgot to mention that a 2 days ago I alerted a Russel futures trade at 1197.5 short in the TF futures– that position is up $2.4k. Each point in the Russel futures is about $100. Since I shorted at 1197.5 and now are at 1172idh– that’s roughly $2.5k– I’ll round down just to be conservative.
That one was kind of close because I out a stop at 1208– and it tested 1206.8– just missing my stop. From there it dropped below 1190 and then went back up to retest 1201 before falling to 1170 as I expected to happen by this Friday (tomorrow).
In this case, I used futures instead of optics since I was already using the options on the SPY trade above. Both great trades!