We took profits by closing our SPY calendar/diagonal spread last Friday and reset the trade. The re-set started with a single calendar spread given that we didn’t have a clear direction for the SPY looking ahead to the next week. We got it today after the CPI number came out and the market sold off. The one leg re-set gave us the flexibility to wait on a market move and adjust with a second leg to the lower side of our trade.
TRADE ADJUSTMENT: Add Spread Leg
SPDR S&P 500 ETF (SPY): 398.99
ACTION: OPEN the SPY 18 Nov 390 call / 16 Sep 390 call calendar for a net debit of around 11.90
BTO the SPY 18 Nov 390 call
STO the SPY 16 Sep 390 call
The 50K Portfolio is trading 3 contracts; the 10K Portfolio is trading 1 contract.