TRADE FINALIZED: US 500 Index Short PutTargeting consistent premium income.
I. Trade Details
Asset: XSP (S&P 500)
Strike Price: 640
Expiry Date: Feb 27th
Closing Date: Feb 18th
II. Financial Result
Action: Buy to Close (BTC)
Entry Premium (Received): $207
Exit Premium (Paid): $49
Net Profit/Loss: $158 (1.58%)
III. Performance Summary
Exit Reason: 75% of Max profit achieved.
Total Days Held: 15 days
Return on Portfolio Size: 1.58%
IV. Strategy Review
Market Notes: Index stayed above strike as expected
Rule Adherence: All risk management guidelines were followed.
Trade Summary
Details
Underlying
XSP (S&P 500 Mini-Index)
Strike / Expiry
$640 / Feb 27th
Total ROI
+1.58%
Holding Period
15 days
Max ROI at Expiry:
+2.07%
📝 Live Trade Log & Updates:
Feb 18th: Trade closed as we achieved 75% of Max Profit. ROI 1.58%.
Feb 18th: Up 1.37%. No action required.
Feb 17th: Up 0.71%. No action required.
Feb 14th: Up 0.59%. No action required. S&P 500 remains 6.5% above breakeven.
Feb 13th: Up 0.39%. 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 1.39%. No action required.
Feb 11th: Up 1.26%. No action required.
Feb 10th: No action required.
Feb 9th: Up 1.32%. nothing to do. Leaving this trade run to expiry.
Feb 7th: Up 0.9%. Nothing to do. Leaving this trade run to expiry.
Feb 6th 11.45 ET: S&P 500 moves higher on this trade swings back into profit. Up 0.6%. We will continue to hold until expiry where we expect to make a 2.07% ROI.
Feb 6th: The trade has swung into a temporary paper loss following yesterday's volatility. However, we remain fully confident in achieving our 2.07% 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 640 strike and our 637.93 breakeven, with the Probability of Profit (POP) remaining robust at circa 90%. No action required
Feb 5th: No action required.
Feb 4th: XSP has rebounded nicely since we placed the trade. Up 0.62% in less than 1 day. We will let this trade run to expiry.
This strategy is return-based with unlimited risk, relying on margin - Traditional Options on IBKR.
I. Setup & Rationale
Underlying Ticker: SPY (S&P 500 ETF) - also XSP for smaller account sizes
Current XSP Price: $690
Market Outlook: Strong Bullish/Neutral - A significant drop is not expected.
Goal of Trade: Maximum Premium Income / Return on Margin (RoM)
Probability of Profit (PoP): 96% (this is the main attraction of the strategy)
II. The Trade Details
Action: Sell to Open (STO) 1 Naked Put Option
Strike Price: $640
Expiration Date (DTE): Feb 27th 2026
Premium Collected: $2.07 per share
Total Premium Collected per contract: $207
III. Risk & Profit Metrics
Maximum Profit: (The credit collected) $207
Breakeven Price: $637.93. (We need the stock price to remain above to price at EXPIRATION to make a profit)
Initial Margin Required: $6,000 (But this depends on numerous factors such as your account size and other positions in your account).
Potential Loss: unlimited...losses continue to increase as the share price falls further below break even.
IV. Trade Management & Exit Plan
Take Profit: Leave expire worthless.
Trade Mgt (Critical): If SPY share price gets within 1% of strike price we will immediately roll out to the next monthly expiry and down to a strike price that gives us at least a $0.01 cent credit. As it stands now we could roll down to end of February to below the $610 strike.
📞 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.
