No one thought SPY was going to reach $534, so it was selling for 0.20 premium for 1 contract aka 100 shares = $20. If the stock only went down to $534 or higher they would have lost $20.
It ended up going down to 505
534-505 = $29
29x100-$20 = $2880
Looks like they sold before end of day to lock in the gains though.
Yeah… it was a lot of money for me. I had three other contracts that were SPY puts at a lower strike. Think I paid 20 each. Sold them for 4800 dollars profit off 3 contracts and could’ve made much more at close. They didn’t expire until Monday either but I don’t like holding through the weekend. 7200 in a day is enough for me
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u/aeclipseguy 1d ago
Can some one explain this trade to me and how did it work?