Last night the new NFL football season kicked off with the rest of week 1’s opening games this weekend. Those familiar with football know that you want your field goal kicker (to score three points or extra point after touchdowns) to kick the ball far enough to reach the uprights.
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In day two of this selloff in markets, volatility surged giving us an opportunity to add a short put spread to our existing short call spread trade in our primary HiPOS Conservative Strategy. Those who have been in the strategy will recognize this total position as a short iron condor trade.
After Friday’s successful expiration, the market has given us another opportunity to sell calls on the S&P 500 Index. This is the 3rd consecutive call spread placed in our HiPOS Conservative strategy; and that is unusual.
Today is expiration day for our primary HiPOS Conservative trade. The position will expire worthless at the close of the market today (Friday) which results in a full profit realized. As sellers of premium, we take in a credit and want the positions to eventually go to zero
As we can see by our usual graph, the market has cooperated quite well given we are short a call spread. While the market moved higher and even made a new all-time high this week, with the time to expiration waning, the value of the spread dropped in value