Hello Investors,
Today we discussed a few ways to trade the S&P 500. You can use the big sized index option contract SPX. The smaller sized index option contract XSP. The smaller sized stock option contract SPY. How to gain better liquidity with each through your strike prices choices. How the work in terms of cash settlements and more. In addition, we entered into a new trade in SPY. And we sold another short put in DELL to replace our prior position. Finally, we bought 1 share of UBER with the premium that DELL provided. The details are shown below.
Sell to open: DELL Nov 21st (monthly) 110.00 strike put
Credit: 1.08
This is only for those willing to own 100 shares of DELL at 110/share.
Bought 1 share of UBER at 101.15 with the premium received
Entered into a call butterfly in SPY.
Buy to open: SPY Oct 17th (monthly) 675.00 strike call (ratio of 1)
Sell to open: SPY Oct 17th (monthly) 685.00 strike call (ratio of 2)
Buy to open: SPY Oct 17th (monthly) 695.00 strike call (ratio of 1)
Debit: 1.65
Max risk = 1.65 or $165.00 per spread
Max reward = 8.35 or $835.00 per spread
Have a great week!