Latest Credit Spreads Plays

The three major indices had been drifting lower rather slowly for the past 6 market days. It had been hovering around its resistance. The Bulls were trying very hard to hold on since one bad news after another (Non-farm payroll, AA earnings, etc) failed to push down the market convincingly. However, today's market performance seemed to show that the Bears were back to play.

We have less than 2 weeks before the next Expiry Friday. I love to play Credit Spreads during the last 2 weeks before Expiry Friday. At the last handholding session on last Tuesday, I entered a "live" trade.

• Sell to open, Bear Call Spread, FDX April 95/100 Call for $1.62 (when the stock was around $94.89)

Subsequently, I also played the following trades:

• Sell to open, Bear Call Spread, LEN April 20/22.50 Call for $0.70 (when the stock was around $19.91) - played on Tuesday.
• Sell to open Bear Call Spread, MER April 45/50 Call for $2.25 (when the stock was around $46.07) - played today. This is in-the-money play.
• Sell to open Bear Call Spread, BBBY April 27.50/30 Call for $1.55 (when the stock was around $29.62) - played today. This is deep in-the-money play. I am testing out playing deep in-the-money credit spreads for earnings play. BBBY was due to release its earnings after the market close today. It later reported that it beat earnings expectations but it also issued downside guidance. We shall see how the stock and my options perform tommorrow.

All my trades were short plays as I expect the market and the underlying stocks that I played to continue its downslide.

PersianCat04 (Millionaire-in-progress)