Close SPX Credit Spread for net debit of $0.90
(Sell SPX 27JAN12 1330.0 Call
Buy SPX 27JAN12 1325.0 Call)
Gain of $0.70 by investing $3.4 (5-1.6).
Strategy, Approach and Statistics
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Beginners question!
ReplyDeleteWhat contract is that SPX? Is that an ETF or a futures contract?
Thanks
SPX tracks S&P Index. SPX trades like any other stock options, but it can not be exercised/assigned before the option expiry date. It is always cash settled so you can not buy it as a stock.
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