Ok, today we’re buying the 5 X SPY DEC 30 226 PUT back for $1.09 (1 Contract = $109). We sold it for $1.06 a week ago, so we’re taking a small loss. But this doesn’t matter. With this Strategy we will always sell a higher priced contract than the one we buy back. That way we will be profitable over the years.
We sell 5 X SPY JAN 06 225 PUT for $1.12 ($112).