So yesterday night, The Iran Ceasefire with US happened and price jumped up 175 points. Trump basically chickened out after sending all those tweets. I decided to go against the trend as we went so far up, normally price tends to want to go back to vwap at least. Positive MVC Started at 6800 at 6:30 AM PST. I sold one call credit spread for $1.10 at strikes 6830/6840 at 6:32 AM PST. I set a stop a loss at the high of the SPX Premarket which is shown on US500 which is 6806.1. I’m looking to close these for $0.05 if they stay below vwap after two hours. If price hits my stop loss ill look to close at breakeven or 50%.
Update: It is 11:42 AM PST. Price went back up around 10:30 to 6790 however it couldn’t push past 6800 and now it dropped back down to 6767 area. I will probably let these expire worthless. Will post an update if price climbs back up to 6810.