This strategy is for selling a cash-settled short put option on the US 500 Index via the IG options chain. Maximum loss can be significant if not managed correctly. Strictly adhere to risk mgt guidelines. NOTE: We provide daily updates on this trade...to see original trade from day one scroll below updates.
Updates:
Jan 28: Up 2.36%. Nothing to do here. Let it run to expiry.
Jan 26th: Up 2.25%, Nothing to do here..letting it run to expiration.
Jan 23rd: We are now up 2.14% on this trade. Nothing to do here. Let it runt o expiry and we will achieve full profit of 2.5% (tax free for residents of UK & Ireland).
Jan 22nd: The US 500 rally has pushed our current return to 1.86% ROI in less than 48 hours. We are maintaining this position until expiry to capture the full projected 2.5% yield. (This trade remains tax-free for residents of the UK and Ireland).
Jan 21st: Excellent start across the board. Our primary trade has moved into profit within 24 hours, and we remain on track to secure a 2.5% ROI in under 9 days. No adjustments are needed; we are letting the math work toward expiry.
Original Trade:
I. Setup & Rationale
Account Size: €10K
Trade Date: Jan 20th 2026
Underlying Instrument: US 500 Index Option (S&P 500 Index)
Current Index Price: 6830
Market Outlook: Strong Bullish/Neutral - Expected to remain above the strike.
Goal of Trade: Premium Income Generation
Probability of Profit: 95% (This is the main attraction in the trade)
II. The Trade Details
Action: Sell to Open Short Put Option
Strike Price: 6,500
Expiration Date: Jan 30th ( 9 Trading Days)
Premium Collected: $14.68
Trade Size: 20
Total Premium Collected: $293.60 ($14.68*20)
III. Risk & Profit Metrics
Maximum Profit: $293.60
Breakeven Price: $6,500 - $14.68 = $6,485.32 (We need the share price to remain above this price at EXPIRATION to make a profit)
Margin Required: We recommend keeping it to below 60% of account size.
Maximum Loss: Unlimited - losses can increase the further the share price drops below the breakeven price.
IV. Trade Management & Exit Plan
Take Profit: Let Trade run to expiry unless we implement our risk management plan between now and expiry.
Risk Mgt: If Price drops to 6,600 we will roill down to roughly 6200 for the February expiry and generate a net credit.
If the price gets to within 6600 of strike price, we will rollout to next monthly expiry and down to a strike price that gives you a $0.01 minimum credit.
If price suddenly drops and no rollout can be activated: we may close down the trade and take the loss. We will decide if and when that situation occurs.
📞 Strategy Call Assistance
If you require assistance with trade setup, risk management, or strategy review, please schedule a strategy call.
PREMIUM Plan Members: Strategy calls are included in your plan.
All Other Members: Strategy calls can be scheduled at a rate of €100 per half hour.
