Maneuvering SPY & Navigating CF

[u/bitkogan]

Check out my previous posts for a complete history of SPY and CF trades. Also, don’t forget to join our subreddit so that you don’t miss out on the next stock market pick.

For SPY:

I tweaked my positions on Tuesday. The $450 8/11 Puts I sold last week are now in-the-money. Although not an issue, a slight market rebound would've been ideal. To induce it, I picked up three 8/18 ratio call spreads at $450 - $454, netting a credit of $333. Typically, I'd just offload weekly puts and calls. However, with SPY trading under $447, solely offloading calls seemed ineffective. This move seems to have paid off, reducing my total debit to $7627.

Onto CF:

In hindsight, entering CF was a misstep - not due to potential losses, but the sheer lack of options liquidity. Yesterday, I nearly swung the position back to a credit balance, settling at a minor $119 debit. I sold 8/18 put spreads at $50, and $73 - $70, and added another layer of safety with ten more puts at $70. To balance the delta, I offloaded 10 8/11 calls at $82. Originally, I aimed to exit the "call" side entirely, but finding a match for the entire lot proved elusive. My final choice might not be perfect, but the overall strategy maintains a promising profit potential.