News Event Straddle using SPY Weekly Options Here is a SPY straddle where a trailing stop will be use to close out one of the options and hopefully catch any move after the fed news event today.
NEWS EVENT - FED SPY Straddle SPY MAR 31 204 CALL @ $.45 SPY MAR 31 202 PUT @ $.55 Equal dollar amount invested in each Cost $1.00
RISK DISCLAIMER Options involve risks and are not suitable for everyone. Option trading can be speculative in nature and carry substantial risk of loss. Only invest with risk capital.
The net profit of the straddle so far depends how quickly the put potion of the trade was closed.
The call portion of the straddle is up 200% with the position remaining open overnight. We will continue to hold the position open and protect the profits with trailing stops. We will wait for a TOP signal.
SPY is at resistance 205
SPY MAR 31 204 CALL opened @ $.45 High for the day was $1.50 for a 200% profit on the call portion of the trade
SPY MAR 31 202 PUT @ $,55 closed with a trailing stop Equal dollar amount invested in each Cost $1.00