DislikedTrading the Dec rally premise above, I will demonstrate the power of spreads: The Dec21/Dec31 $292/293 diagonal can be had for 1 cent. 1 cent debit could return > $1. The diagonals have a big downside risk, though, so I mitigate that with a Dec21 $294/295 call vertical...for 6c. So the trade risks 7c and can return as much as $1.25. If I'm wrong about December hey I'm just out 7c... This trade I can put on and forget about until December, no stop loss needed. If the spoos rallies into early Dec back to mid-high $280's, I might start looking to take...Ignored
I like this spread and I'm on it too. I paid at the end 16c + 28$ commissions