Let’s book profits on our JPMorgan Chase (JPM) spread, earning a 6% return over our $500 in capital allocated. And since the trade was open just four days, our annualized rate of return is an impressive 548%.
Current Stock Price: $107.07
Cash in Hand: $0.54
- Buy to close the JPM Oct Week One (10/7) 100 Put for around $0.30
- Sell to close the JPM Oct Week One (10/7) 95 Put for around $0.06
- Set initial debit limit at $0.24, but adjust as needed to close today
Profit: $0.30, or $30 per spread