Option Trade 2/4/2020

Buy April 54 put @ 1.525
Sell April 52 put @ 1.10
Sell April 51 put @ 0.975

Total Credit $220.00 less $12.15 commissions for a profit target of $207.85
Suggested account size: $2,000.00
Targeted Returns: 10.4%
Trade duration: 73 Days Age of Trade: 10 days
Results to Date: +$107.85 = 5.4% gain.

Comments: Today the April futures gained +0.30. This resulted in the April puts losing some value and the trade gained $20.00. Perhaps the implied volatility also went down a little. The profitability on this trade is fairly modest but the trade can be doubled, tripled or even more for a larger account. I have entered quite a few versions of this trade with a total premium credit of $2,806.75 net of commissions. Today I added the following trade:

Buy April 58 put @ 1.55
Sell April 56 put @1.100
Sell April 55 put @ 0.925

Total Credit $190.00 less $12.00 commissions for a profit target of $178.00. The broker where this trade was placed has a mildly lower commission rate.

Best wishes,

Doc