Rescue SPY 2019 FEB 215P

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  • 2019-01-24 at 08:23 #6605
    Luna Master
    Participant

    How to salvage far OTM put with 22 DTE*
    It is Jan 24, 2019 and SPY is trading at 263.83 and it gained solid ground in the last 3 weeks from a low of 232 on December 26, 2018. I still have a lonely SPY 4 x FEB 215 put (4xFEB215P) is now trading for mere 0.12. So this is $48.

    Idea: bring the fighting closer to home.
    -01- sell to close 4xFEB215P for $0.12 ($48)
    -02- buy to open 5xMAR230P for $1 ($400)
    -03- sell to open 5xMAR215P for $0.45 ($225)
    -04- pay $222 + $16.75 in commissions = $238.75

    For $238 DEBIT I am rolling SPY puts into next month (MAR 2019) and gaining downward protection if market start to slide again.

    *DTE – days till expiration

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