First trade using 2019 options. New year, fresh start!
I decided to start it off with a Credit Put spread. Even though we are not 100% extreme oversold we are almost there and with the VIX above 21 it is just an attractive proposition very far out of the money.


Trade Details:
SELL 4 January SPX 2310/2300 Credit Put spreads @0.70

Credit:          $280 (0.70 x 4 x 100)
Max Risk: $3,720 (9.30 x 4 x 100)

The max risk in this position is $3720 and the return (or loss) will be based on this “investment”. Of course, in case of loss I would never allow it to reach that maximum and some defense would be applied in advance. But for the purpose of calculating a % return on risk at the end, this amount of $3,720 will be used.

(Click on image to enlarge)

SPX Chart for future reference:
(Click on image to enlarge)

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