We are closing the following position for October expiration:
Day limit order
Sell to close SPY Oct 111 put
Buy to close SPY Oct 113 put
for a net debit of $1.85 or better.
We’re closing out the put spread on this October position and we will allow the calls to expire worthless. While the market may move higher still this week, we want to offset the October losses a bit by closing this spread.
More aggressive traders with an upside bias may consider closing half of their contracts here and holding the other half to close later in the week.
Finally, barring a significant move up in SPY, we do not anticipate sending an order regarding the other October position. Traders unfamiliar with their broker’s execution policy may want to confirm that the ITM puts will be exercised against any assigned stock, or just close the ITM spread prior to expiration. We are not sending this out as an autotrading order as we know some traders will prefer to avoid additional transaction costs. Contact your broker if you have any questions regarding their assignment/expiration policies.