TheOptionPlayer.com executed the S&P 500 Index (SPXW) August 8th expiration (8-day) option strategy. Confirmation information is displayed directly below. Login in as a Premium Subscriber to view data/images
The difference between funds received and paid out is an approx. 65% profit if the S&P 500 Index settles above $2,740 at the close of trading on Wednesday August 8th.
Why we recommend it:
• The SPX index is cash settled and follows the European exercise rules where you cannot exercise early on any option positions. The options stop trading on the expiration day and settle the following morning.
• Trading cash-settled indexes will never result in the delivery of stock, as cash-settled indexes (as the name suggests) settle in cash. This means if both options expire ITM your account will automatically get credited with difference between the strike prices (e.g. $2,740 minus $2,735 = $5 per share). The maximum risk is the amount paid for the spread.
• After entering this trade we allow the position to expire at expiration. For this particular strategy there is no reason to adjust the trade or enter a closing order. Any gain or loss will automatically be cash settled in your brokerage account the day after expiration.
• As evidenced in the chart below, the 50-day MA is the firm support for the S&P 500 Index. You can see the index is consolidating higher.
• Virtually all of the recent similar trades have been profitable.
• There is an extremely high probability the SPXW call options will settle ITM (in the money) on the August 8th expiration date.
52-Week High: $2872.87
52-Week Low: $2417.35
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, its accuracy cannot be guaranteed. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors. The investment portfolios of writers may include securities mentioned on the web site. No one associated herewith receives compensation in any manner from any of the companies that are discussed on the website. By accepting emails, including various paid subscriptions and free email reports and newsletters, you agree to the terms of theoptionplayer.com’s website Disclaimer, Privacy Policy and Terms of Use provisions as such may be amended from time to time.
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, its accuracy cannot be guaranteed. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors. The investment portfolios of writers may include securities mentioned on the web site. No one associated herewith receives compensation in any manner from any of the companies that are discussed on the website. By accepting emails, including various paid subscriptions and free email reports and newsletters, you agree to the terms of theoptionplayer.com’s website Disclaimer, Privacy Policy and Terms of Use provisions as such may be amended from time to time.
