SPY Put Spread

Where’s Monty Hall when you need him? Nobody says “Let’s make a deal!” quite like him. With Trump ready to deal with China to get trade rolling, and with the US House to keep the government open, we could use Hall’s resonant voice to keep the excitement going. Of course, the market seems not to need any help because the SPY has reached the level it was before the rout that started early last December. Fun times for bulls. The question is, will the SPY keep rallying on all these happy thoughts, or will it deliver a “zonk”? Hmm, a game show wouldn’t last long if all the players won jackpots, so the zonks keep the shows solvent. Just like selloffs in the market. If you think the SPY might be due for a drop, the long put vertical that’s short the 273 put and long the 276 put in the March quarterly expiration with 44 DTE is a bearish strategy that has a 64% prob of making 50% of its max profit before expiry and that generates $.25 of positive daily theta.

This Trade Is

Total P/L
21%

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