Trade Alert: Roll the Bear Call Spread Fri Aug 30 2024 Hey traders, Larry here. Today we’re going to close the SPX August 30 Weekly 5645/5660 Bear Call spread on the S&P 500 Index (SPX) and open up a new bear call spread. Action to Take: Buy to close the SPX August 30 Weekly 5645/5660 Bear Call spread at current market prices. Buy to close SPX August 30 Weekly 5645 call. Sell to close SPX August 30 Weekly 5660 call. Ensure that these two simultaneous trade actions result in a net debit. Be sure to use a "vertical" order in your brokerage account when you place the trade. Do NOT place this trade as two separate positions. Next, let's open up our new bear call trade... Action to Take: Sell to Open the SPX August 30 Weekly 5605/5620 Bear Call spread for a net credit of $2.00 or better. The spread is currently trading at $2.45. We will assess the range of the spread over the next 10 minutes to ensure you had ample time to enter the trade. If there is insufficient time for traders to enter this trade at our recommended price, we will follow up with further instructions. Sell to open SPX August 30 Weekly 5605 call. Buy to open SPX August 30 Weekly 5620 call. Ensure that these two simultaneous trade actions result in a net credit of $2.00 or better for the spread. Be sure to use a "vertical" order in your brokerage account when you place the trade. Do NOT place this trade as two separate positions. For a refresher on how to do this, watch Part 3 in your video training series and read your special report on vertical spreads. With this trade we expect the market to fall a bit or just stay the same. That's what will cause the spread to expire worthless, granting us the entire premium earned for selling it. This is a speculative trade, and we will not have a stop loss on this position. Our typical spread is 20 points wide. In that case, our max loss will be $20 (or $2,000 on a one-contract basis) minus the premium we earn from entering the position. If the spread trades outside of our specified price before you’re able to get in, don’t chase the price. Simply set a good-till-canceled or GTC limit order at our specified price, and wait for the trade to come back into range. Once it does, the trade will execute automatically. As always, keep an eye on your inbox for the next opportunity. Regards, Larry Benedict
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