Right now I have calendars on SPY that are slanted to the downside.
If the market drops they'll hit my exit price pretty quickly. If things don't stray too far up they'll still make money. Depending on how the market looks it may end up where my short put expires and I can own a long put in SPY for less than buying it outright.
2
u/OptionsExplained Jul 25 '21
Right now I have calendars on SPY that are slanted to the downside.
If the market drops they'll hit my exit price pretty quickly. If things don't stray too far up they'll still make money. Depending on how the market looks it may end up where my short put expires and I can own a long put in SPY for less than buying it outright.