Weekly Trade for SPX

Trading Weekly Options

Here’s a quicky weekly trade. With the VIX above 40 I do not have too many trades on right now, and so I got bored and went looking for a speculative trade. I think I found one. With the SPX having trouble getting back above 1100, it makes it a good time to sell some weekly Calls. Actually I was thinking of selling Weekly Puts this morning, but the market came back all the way to 1100 but couldn’t break it.

So here is what I did:

Sell Oct1 11 1145 Calls and Buy Oct1 11 1150 Calls for a credit of .55 each

85% Probability of Profit. 12% Potential Return.

Weekly Trade Option Strategies

I don’t want to hold these all the way to expiration (Friday). I am expecting SPX to drop after failing to raise above 1100 and will exit the trade with a respectable profit. If SPX breaks above 1100 to about 1110, I will probably exit the trade as well because my guess was wrong.

Want more useful option trading posts like this? Check out our previous blog posts and our option trading training page.


  1. Carl on October 4, 2011 at 1:01 pm

    Oct11 is a monthly did you mean Oct1 11?

    • Genius on October 4, 2011 at 1:48 pm

      Yes you are correct: they are Oct1 11.
      I missed the first 1,
      Sorry for the confusion. I will make the change in the post.

  2. Benita on October 4, 2011 at 1:12 pm

    Good trade. I sold a 1225/1230 call spread last Thursday when weeklys came out with the stock at 1155 and received .80 credit for each contract. Bought it back yesterday for .10, net profit was .70 per contract. Could have just let it expire worthless as there is NO way the stock will climb to 1225 before tomorrow but I wanted to free up my margin and didn’t need to hold out for the last .10

  3. Charles Merrick on October 4, 2011 at 1:16 pm

    Is that a bull call spread or a bear call spread. Eoptions
    asks that.

    • Genius on October 4, 2011 at 1:47 pm

      bear call spread.

  4. Charlnie Evans on October 4, 2011 at 1:29 pm

    I don’t know if I am enrolled or not. I talked to a computer for 30 minutes tryi8ng to just have a little question answered:”Am I enrolled or not?” I finallay got a telephone number to call. The lady I was connected with could not speak Texas well enought for me to understand her, so I just hung up. If you can get someone to call me who an speak Englsih, I think I want the program. If not, just cancel any nfor that I amay have mailed to you.

    • Genius on October 4, 2011 at 1:47 pm

      Sorry but I have no idea what you are talking about. We dont have a computer answering service or a woman working with me. You must have us confused with someone else.

  5. Fred Keinrath on October 4, 2011 at 2:51 pm

    Um, isn’t that 11% potential return with a 89% probability of profit or is my math wrong? $.55 / $5.00 = 11% and 100 – 11 = 89% ? This IS the way I’m supposed to calculate this, right? If not, what is the correct way?

    • Genius on October 4, 2011 at 3:28 pm

      I got the prob of profit from the thinkorswim software.

      $500 max loss per spread – $55 credit per spread = $455 actual max loss

      55/455 = 12.08% potential return

  6. Art on October 4, 2011 at 2:51 pm

    But seems SPX will close above 1100…

    • Genius on October 4, 2011 at 3:30 pm

      Wow, what a close. SPX closed at 1123.95.
      that was unexpected – all during the last hour or so.
      See it was a quick trade.
      Actually I am still in the trade. Was not at the computer during the last hour so I missed it.
      Will see about exiting tomorrow based on what SPX does.

  7. Benita on October 4, 2011 at 3:02 pm

    FYI, if you’re looking at putting on this or a similar trade. SPX expiration is generally on Thursday as opposed to Friday so keep that is mind when looking at SPX trades.

    • Gavin on October 10, 2011 at 4:36 pm

      Actually the closing $ value of the SPX options is taken from the average price in the first half an hour of trade on the Friday. See the link below for details, notice that the SPX closed at 1209.11 on Thur Sept 15, but the Sept options had a settlement value of 1216.74. This is because the market traded higher on Friday morning. Keep this in mind when trading weeklies!


  8. chris on October 4, 2011 at 3:28 pm

    That was a quick trade. Looks like you got stopped out already?

    • Genius on October 4, 2011 at 3:31 pm

      I wish. did not set a stop loss so I am still in it.

  9. Dennis on October 4, 2011 at 3:28 pm

    I knew it. As soon as I put the two trades on, the market reversed. Crazy stuff.

    • Genius on October 4, 2011 at 3:32 pm

      Ahh so you are to blame for the loss.
      Next time you do a trade, let me know, so i can do the opposite. 🙂
      Just kidding. I know the feeling

  10. kanu on October 4, 2011 at 11:46 pm

    Do u have any idia how may newbee would have got screwed with ur genius quick trade ???? ithink can do bater than that using fib retracemet, i think u should use ur title more apropriate than ” GINUS” LOL ……!!! SORRY JUST DON’T CUT IN


    • Genius on October 5, 2011 at 10:27 am

      I normally don’t argue with people who post on the blog, but man this is one of the stupidest things I have read in a while.

      Who told you this was for “newbees”? This was a weekly option trade based on technical analysis. Weeklies are by themselves the defination of gambling. And for you to be able to trade an index like SPX you should not be a newbie and your broker would not have given you the proper account access to do so. And if you had actually read the post and followed it blindly you would have exited the trade at 1100 like I wrote and you would not have lost much.

      Secondly, I did not tell you to follow this trade. I only report what I am doing. I did this trade, and it lost money. Trades do that. You gonna tell me you predicted the market to go from negative 1% to postive 2% in the last hour of trading? If you are going to put me down at least learn to spell. What the hell is a “ginus” anyway. Go ahead and do “bater” with your fib stuff. That’s why you are hanging out on a site that teaches people how to trade. Give me a break.

      I’m sorry folks but if you don’t have common sense you should not be trading. Taking a risk on a spec trade like this one has its place in trading. Like I said in the post, I was bored and went looking for a trade. I thought this one would work, it didn’t. Move on to the next one. Don’t bet the farm on any one trade and don’t let a loss knock you out.

      I could have made $55 a contract. Right now as I type the trade is down $110 a contract which is double what I could have made. Which is also a good level for a max loss. In option selling you are going to have losing trades even with the probabilities on your side. As long as you keep the losses under control you will come out ahead. So a good limit for a max loss is 1.5 to 2 times your credit.

  11. George Leuong on October 5, 2011 at 11:11 pm

    kanu is an idoit!!!! <–typed that so He could understand it…lol

  12. Jerry Jones on November 26, 2011 at 10:59 pm

    I sell weekly calls on FAZ and FAS every week. I bring in very good premium with these 2 trades every week. Friday I sold weekly calls on FAZ, I brought in $1.55 on that trade and I sold weekly calls on FAS and brought in $0.29 for a total of $1.84. I have been very successful trading the 2 etf’s and selling calls on them.

    • Jerry Jones on November 28, 2011 at 5:20 pm

      Hi Benita.I am very successful selling calls on these 2 etf’s. I have profited on FAS and FAZ every week in the past 2 months. I have been trading these 2 etf’s for a very long time! Every since they were brought to the market, which was I think back in 2008. I have a April 2012 FAZ $50 call position and I sell weekly calls against it. Friday I sold the FAZ Dec 2 2011 $60 weekly call for $154.00. Today that weekly call is $30.00, I have a unrealized gain of $124.37 80.57%. I have a FAS Jan 21 2012 $54 call position, which was up 17.86% today. Friday I sold a FAS Dec 2 2011 $61 call for $29.36, which I have a unrealized gain of $14.37 48.93%. These are diagonal spreads. How is your trading been going??

  13. Benita on November 28, 2011 at 1:53 pm

    Jerry, how many successful weeks have you had in the past say…2 months and how much did the market move today affect your FAS positions?

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