Here’s a trade I put on yesterday in my personal account. It is a straightforward put credit spread on CME. Great for papertrading.
It is my belief that the markets will rally into the end of the month. Even without the rally, CME should do fine. It has been performing nicely the last few months and it confirms to the requirements of my new credit spread trading system that I am testing.
Sell to Open July 280 Puts
Buy to Open July 270 Puts
Right now, you can get .85 cents credit for the trade which is $85 per spread. The max loss is $915 and so the Profit Potential is 9.3%. There are 30 days left in the trade until expiration.
The idea is to let it go to expiration and let it expire. If CME drops I would take this trade off when I was down about 15%.