Sold MDY Put Option Combination

I made the first trade in my new account that was funded today. I bought an MDY put and sold 2 different MDY puts at a lower strike to pay for the long put. While MDY was trading at $306.01, I bought to open one MDY $305 put for $11.05 and sold two MDY $290 puts for $6.29 each. I received $152.69 for the ratio spread that hit at $1.53 after I paid $0.31 in commission. My order was for $1.45, but realized after I finished the video below that it hit for $1.51, only after I lowered the limit order to $1.45 from $1.50. That has happened to me previously with Interactive Brokers and is always a bonus to get more than you agree to accept.

I’m considering a naked put on IWM next, but with the chart set-up, I thought I should give it another day or two.

You can see my trade logic in this video that I recorded as I placed the order through it being triggered.



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DISCLAIMER: While I am a Registered Investment Advisor Representative, the information contained within this site does not constitue personalized investment advice. This material is meant as entertainment and is only a view into how I invest my own account, but not necessarily how you should invest your own funds. Trade using your own research at your own risk. This is impersonal investment advice which means the material written here, in email exchanges, on Twitter and/or other social networking sites do not purport to meet the objectives or needs of specific individuals or accounts.





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