We like to explore, educate, and share ideas involving options trading. Come along with us on
our journey to demystify the complex yet rewarding world of options trading.

My SPY Put Credit Spread Trades For December 2018

Wow! What an unfortunate month for Put Credit Spreads. Afraid this month returned all my yearly gains and then some. A bit of a disappointing way to end the year. We know months like this will happen. Big drawdowns are part of the overall strategy. The key is to take advantage when times are good to build up a stockpile of reserves.

TickerTypeSpreadExpire DateOpen DateClosed DateOpen CreditClosed DebitProfit / Loss
SPY Put 250/252 12/14/2018 11/23/18 12/03/18 $0.26 $0.03 13.22%
SPY Put 250/252 12/14/2018 12/06/18 12/12/18 $0.25 $0.03 12.57%
SPY Put 249/251 12/21/2018 11/05/18 12/21/18 $0.23 $0.00 -100%
SPY Put 260/262 12/21/2018 11/08/18 12/21/18 $0.21 $0.00 -100%
SPY Put 248/250 12/31/2018 11/19/18 12/31/18 $0.23 $1.26 -58.18%

After months like this are done, and once I am done soaking my sorrows in whiskey (clearly not the expensive stuff) I typically find time to reflect. I often learn to appreciate losing months like this -- They are humbling. After many profitable months, it is easy to convince yourself this strategy can't fail. As a result, every few weeks I make a point of pulling a report just to see the months with massive losses. Very good to keep this in perspective. I do this via Options Cafe's Reports of course.

One thing to note. The trades above that had a closing debit of $0.00 and 100% loss I let expire. I just could not find a good exit point.

Let's hope the New Year brings us better trades!

Related Topics: spy, put credit spread

Like what you read? Please Share!