A Bet on a 6.5 Point Drop in SPY


This trade was a Bull Put Spread:
Cost: ~$36,000
Expected Range (Exp Rng Sep 20 Expiry): + $13
Probability of touching 278 (downside Exp Rng) = 69%
Probability of touching 291 (upside Exp Rng) = 63%
Profit potential: ~$285,000
Loss potential: ~$184,000
Reward:Risk = ~1.5

Here’s a smaller version for Monday: