Trade Analysis – Short Term Bullish Spread With SPX Monday Weeklys

On Friday I received an email from a student who had recently attended one of the CBOE Options Institute courses.  They (I’m gender neutral to protect their identity) wanted to let me know that they had made the jump into SPX Monday Weeklys.  With the S&P 500 at 2166 they expressed a bullish outlook with respect to the stock market through initiating a bull call spread.   The specific trade involved buying the SPX Aug 29th 2160 Call for 10.80 and selling the SPX Aug 29th 2170 Call at 4.80 resulting in a net cost of 6.00.


Note that the market was trading right at the break-even level when the trade was put on.  The timing for this trade was pretty good as the SPX finished Friday just over 2169.  As we know, things got even better for this trade today as the S&P 500 closed over 11 points higher topping 2180 to start the week.  Our former student was very happy with this result as they held the position into the close for a net profit of $400.