Trade Alert: Bear Call Spread Wed May 1 2024 Hey traders, Larry here. Today we’re going to open a new bear call spread on the S&P 500 Index (SPX)… Action to Take: Sell to open the SPX May 2 Weekly 5100/5120 Bear Call spread for a net credit of $4.50 or better. Please note this trade expires tomorrow. The spread is currently trading at $5.95. We will assess the range of the spread over the next 10 minutes to ensure you had ample time to enter the trade. If there is insufficient time for traders to enter this trade at our recommended price, we will follow up with further instructions. Sell to open SPX May 2 Weekly 5100 call. Buy to open SPX May 2 Weekly 5120 call. Ensure that these two simultaneous trade actions result in a net credit of $4.50 or better for the spread. Be sure to use a "vertical" order in your brokerage account when you place the trade. Do NOT place this trade as two separate positions. For a refresher on how to do this, watch Part 3 in your video training series and read your special report on vertical spreads. With this trade we expect the market to fall a bit or just stay the same. That's what will cause the spread to expire worthless, granting us the entire premium earned for selling it. This is a speculative trade, and we will not have a stop loss on this position. If the spread trades outside of our specified price before you’re able to get in, don’t chase the price. Simply set a good-till-canceled or GTC limit order at our specified price, and wait for the trade to come back into range. Once it does, the trade will execute automatically. As always, keep an eye on your inbox for the next opportunity. Regards, Larry Benedict
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