Market Notes: Index stayed above strike as expected
Rule Adherence: All risk management guidelines were followed.
📝 Live Trade Log
Daily updates and management actions.
Feb 18th: Closed trade for a realised gain of 2.98% in just 1 days - tax free for residents of YK and Ireland.
Feb 18th: Up 2.82%. No action required.
Feb 17th: Up 1.51%. No action required.
Feb 14th: Up 1.39%. No action required. S&P closed flat today. We remain 6.5% above our breakeven price.
Feb 13th: Up 0.98%. No action required. S&P 500 closed down 1.5% yesterday but this trade still has a 94% probability of profit. The index still remains 6.5% above our breakeven price.
Feb 12th: Up 2.8%. No action required.
Feb 11th: Up 2.6%. No action required.
Feb 10th: Up 2.55%. No action required.
Feb 9th: Up 2.67%. Trade going perfectly well. Nothing to do. Let trade run to expiry.
Feb 7th: Up 1.96% on the trade after a rebound in S&P 500. Nothing to do with this trade. Leaving it run to expiry.
Feb 6th (11.30 ET): S&P 500 rallies and the trade swings back into a 1.5% profit. Nothing to do with this trade we are still on track to make 4% by the end of February.
Feb 6th: The trade has swung into a temporary paper loss following yesterday's volatility. However, we remain fully confident in achieving our 4% ROI by month-end. Yesterday’s sell-off in the S&P 500 spiked implied volatility (IV); as this fear subsides and IV drops, our position will benefit significantly from accelerated premium decay. Crucially, the Index remains well above our 6,400 strike and our 6,376.31 breakeven, with the Probability of Profit (POP) remaining robust at circa 90%. No action required.
Feb 5th: No action required.
Feb 4th: We got our timing perfect. US 500 has rebounded since we place the trade and we have gone straight into profit of 1.45%. Nothing to do here. Just let Trade Run to expiry.
⚙️ US 500 Strategy & Original Setup
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.
I. Setup & Rationale
Account Size: €10K
Trade Date: Feb 3rd 2026
Underlying Instrument: US 500 Index Option (S&P 500 Index)
Current Index Price: 6900
Market Outlook: Strong Bullish/Neutral - Expected to remain above the strike.
Goal of Trade: Premium Income Generation
Probability of Profit: 96% (This is the main attraction in the trade)
II. The Trade Details
Action: Sell to Open Short Put Option
Strike Price: 6,400
Expiration Date: Feb 27th ( 24 Trading Days)
Premium Collected: $23.69
Trade Size: 20
Total Premium Collected: $473.80($23.69*20)
III. Risk & Profit Metrics
Maximum Profit: $473.80
Breakeven Price: $6,400 - $23.69 = $6,376.31 (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 6,500 we will roll down to roughly 6000 for the March expiry and generate a net credit.
If the price gets to within 1% 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.
