On September 19th https://www.theoptionplayer.com/ executed an S&P 500 Index ETF (NYSE: SPY) October 19th expiration (31-day) option trade. October expiration option contracts expire today and we will let all the call options expire worthless with the maximum profit. Confirmation information is displayed below.
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The chart below confirms the S&P 500 Index ETF remains below our $295 sold call. The difference between funds received and paid out is an approx. 20% profit.
S&P 500 Index ETF (NYSE: SPY) is currently trading well below our sold call. If the ETF remains below $290 we plan on allowing all the contracts to expire worthless.
• However, if the price moves higher, we will initiate an order to close out the position (buy back all the sold call option contracts).
• Most brokers will let customers initiate some type of contingency order that will automatically execute if a stock reaches a specified price.
• One alternative is to just play it safe and close out the trade at the current price.
Whatever you decide DO NOT let the SPY ETF end the day above the sold call at the close of trading today; otherwise you will be automatically assigned by the broker over the weekend.
The information presented here is for educational and informational purposes only, and this document is not to be construed as an offer to sell, or the solicitation of an offer to buy, securities. The analysis provided is based on both technical and fundamental research and is provided "as is" without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful.