***Closed***SPY (Standard & Poors Dep Rec) Vertical Call Spread initiated on 25 Apr 2011
SPY (Standard & Poors Dep Rec) Vertical Call Spread initiated on 25 Apr 2011
Trade Type: Low Probability, High Reward Iron Condor (Legging-in)
Trade Summary
25 Apr 2011
SPY at 133.6 (-0.17)
25 days to expiration
Action: Sell a new vertical call spread for May expiration.
Sell to open SPY May 135 Call
Buy to open SPY May 137 Call
For a net price of $0.67-0.68 credit or better. [All TOS autotrade participants were filled at $0.67 credit.]
Net margin required: $131-132 per entry
Analysis
We’re hoping to leg-in into a full iron condor with this trade in the coming days to rake in more premiums. We’re selling the call spread today for very attractive premiums. We believe there is strong resistance at the 134 level. There were three failed attempts to break through the 134 level in recent times. The first was on 18 Feb 2011 when it closed at 133.95, then again on 6 Apr, it reached a day-high of 134, only to close at 133.66 and only yesterday it closed at 133.78 (see attached chart).
