Monthly Income via SPY Bull Put Spreads

Discussion in 'Journals' started by cactiman, Dec 4, 2012.

  1. Goal:
    Set aside $4,200.00 and use $2,100.00 per month to make a minimum of $400.00 per month Additional Income, via SPY Bull Put Spreads.

    Method:
    Sell 25 Spreads per 2013 Monthly Expiration, 5-10 Spreads at a time, up to 42 days (6 weeks) before each Monthly Expiration, at a Minimum Limit Price of $0.19.

    1. January 2013 Expiration: Sell 25 SPY 136/135 Bull Put Spreads at a Minimum Limit Price of $0.19, by 12/07/2012.

    2. February 2013 Expiration: Sell 25 SPY 136/135 Bull Put Spreads at a Minimum Limit Price of $0.19, by 01/02/2012.

    3. January Spreads Expire Worthless on 01/18/13, releasing $2500.00 of Margin.

    4. Order a Withdrawal Check for $400.00, leaving $2100.00 ($2,025.00 + $75.00 for commissions) for March.

    5. March 2013 Expiration: Sell 25 SPY 136/135 Bull Put Spreads at a Minimum Limit Price of $0.19, by 02/08/2012.

    6. etc., etc.
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    January 2013:
    Total Income: $415.00
    Net % Gain: +20.65% in 46 days

    SPY (S&P 500 Index)
    About SPY: EXCHANGE-TRADED FUND SEEKING PERFORMANCE CORRESPONDING TO THE STANDARD AND POOR'S 500 INDEX.
    [Bull Put Spread]
    Bet: SPY Closes at 136.00 or Higher on 01/18/13
    12/03/12: SELL -5 VERTICAL SPY 100 DEC 12 136/135 PUT at .19 LMT (SPY at 142.17)
    Break Even: 135.81
    Max Loss: $405.00
    Cost of Trade: credit $95.00 - $15.00 = $80.00
    Net % Gain: +19.75% in 46 days (0.43% per day)

    SPY (S&P 500 Index)
    About SPY: EXCHANGE-TRADED FUND SEEKING PERFORMANCE CORRESPONDING TO THE STANDARD AND POOR'S 500 INDEX.
    [Bull Put Spread]
    Bet: SPY Closes at 136.00 or Higher on 01/18/13
    12/03/12: SELL -5 VERTICAL SPY 100 DEC 12 136/135 PUT at .19 LMT (SPY at 142.19)
    Break Even: 135.81
    Max Loss: $405.00
    Cost of Trade: credit $95.00 - $15.00 = $80.00
    Net % Gain: +19.75% in 46 days (0.43% per day)

    SPY (S&P 500 Index)
    About SPY: EXCHANGE-TRADED FUND SEEKING PERFORMANCE CORRESPONDING TO THE STANDARD AND POOR'S 500 INDEX.
    [Bull Put Spread]
    Bet: SPY Closes at 136.00 or Higher on 01/18/13
    12/03/12: SELL -5 VERTICAL SPY 100 DEC 12 136/135 PUT at .20 LMT (SPY at 141.90)
    Break Even: 135.80
    Max Loss: $400.00
    Cost of Trade: credit $100.00 - $15.00 = $85.00
    Net % Gain: +21.25% in 46 days (0.46% per day)

    SPY (S&P 500 Index)
    About SPY: EXCHANGE-TRADED FUND SEEKING PERFORMANCE CORRESPONDING TO THE STANDARD AND POOR'S 500 INDEX.
    [Bull Put Spread]
    Bet: SPY Closes at 136.00 or Higher on 01/18/13
    12/03/12: SELL -10 VERTICAL SPY 100 DEC 12 136/135 PUT at .20 LMT (SPY at 141.91)
    Break Even: 135.80
    Max Loss: $800.00
    Cost of Trade: credit $200.00 - $30.00 = $170.00
    Net % Gain: +21.25% in 46 days (0.46% per day)
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  2. :cool:
     
  3. Opened a shorter term SPY trade today, with SPY at 143.47.
    Betting SPY will stay above 140 through December 28th.
    An extra $34.00 this month will certainly come in handy!
    :)


    SPY (S&P 500 Index)
    About SPY: EXCHANGE-TRADED FUND SEEKING PERFORMANCE CORRESPONDING TO THE STANDARD AND POOR'S 500 INDEX.
    [Bull Put Spread]
    Bet: SPY Closes at 140.00 or Higher on 12/28/12
    12/12/12: SELL -2 VERTICAL SPY 100 (Weeklys) DEC4 12 140/139 PUT at .20 LMT (SPY at 143.47)
    Break Even: 139.80
    Max Loss: $160.00
    Cost of Trade: credit $40.00 - $6.00 = $34.00
    Net % Gain: +21.25% in 16 days (1.33% per day)