Option Trade 2/14/2020
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: 22 days
Results to Date: +$137.85 = 6.9% gain.
Comments: Today the April futures gained +0.05 however this trade remained unchanged with a gain to date of $137.85 for a 6.9% gain for the account in 22.-days. I may have been too aggressive in selling the May 66 put at 1.575. The margin requirement has now moved up to $1907.00.
If I have to defend the naked May 66 put, I will do so by buying a 67 put and and then selling a 65 put.
We are in the chase looking for the seasonality high for 2020. The last H&P Report says the kill will begin to fall in a couple of weeks.
Now o see what tomorrow brings.
Best wishes,
Doc