closed my SPX 4300/4310 call spread this morning for 50% profit
opened march 15 at $0.85 credit. closed today at $0.42 debit
net profit: $0.43 per spread = $430 on 10 contracts
held for 9 days. that’s 4.8% return per day on capital at risk
the numbers #
- entry: march 15, $0.85 credit ($850 collected)
- max risk: $1,000 - $850 = $150 per spread ($1,500 total on 10 contracts)
- exit: march 24, $0.42 buyback ($420 paid)
- profit: $850 - $420 = $430
- return on risk: $430 / $1,500 = 28.7%
- hold time: 9 days
- daily return: 3.2% compounded
fuck yeah
why i closed at 50% #
my rule is close at 50% profit or 2 DTE, whichever comes first
this spread had 5 DTE left (expires march 29) but hit 50% today so i closed
learned this from reading tastyworks research - closing at 50% maximizes win rate and reduces tail risk
could’ve held for more profit but risk/reward gets worse the longer you hold
what went right #
- opened when IV rank was 48 (elevated volatility = higher premium)
- SPX stayed below 4300 entire time (never threatened short strike)
- theta decay worked exactly as expected
- slippage on close was only $3 (better than my $6 average)
current positions #
still have 2 open:
- SPX 4280/4290 put spread (march 24 exp) - up 35%, watching for 50%
- SPX 4320/4330 call spread (march 29 exp) - up 18%, need more time
march stats so far:
- trades: 5
- closed: 3
- wins: 2
- losses: 1
- open: 2
- win rate: 66%
- net profit: $545
on track for +2.5% month if current positions close near targets
-AK