Update on Open Trades Expiring in 14 Days (Dec 15)

With just 14 days remaining until expiration the Indexes are hovering up and down. All Bull Put Spreads filled in November are destined to expire worthless. The SPX, NDX and RUT Bull Put spreads have short legs that are very FOTM and not at risk. Even the NDX Bear Call Spreads are safe with the short legs over 100 points away. I really like it when all my spreads are FOTM with 2 weeks remaining.

My goal is to enter new spread trades with 40-30 days remaining to expiration that are very FOTM. I really like it when my short leg on a spread trade is between 2 and 3 standard deviations from the projected index price at expiration. I will be researching new trades for January expiration this week and hopefully will have one or two new spread trades with short legs 100 points away from the current index prices.

I have encouraged all new subscribers this week to practice entering all my trades using CBOE's new Virtual Trading system. This is a great free system that is very easy to use. I enrolled myself to practice selling puts and calls on the same stock each month.