In the HiPOS Conservative strategy this week, marks the end of the current trade with Friday’s expiration. Looking at the graph above we can see that this iteration never really was threatened.
With two calendar weeks and 9 trading days to go the S&P 500 Index (SPX) sits about 8% above or out of the money from the 4075 short call strike. Today’s small drop in prices within the index proved helpful in continuing to show unrealized gains in the spread position.
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With the HiPOS Conservative trade, it is doing what it was designed to do. Allow for fluctuation in the underlying index while seeing positive time decay tick off as the days pass. This position has an end of month or January 29th expiration date to be exact.
Today the ZEGA Traders were busy putting on a new short call spread position in the S&P 500 Index (SPX). Above we have our typical graph showing the underlying index along with the purple curve line and short strike area at the 4075 level. More on that in a bit.
Tuesday the Russell 2000 Index made another fresh all-time high rising another +2.40% to just under 1960. After underperforming against the other indices for some time, it seems like it has been on a rocket ship higher since.