With the price of oil falling more than 6% today, the mid-day rally on the SPX turned into a real rout by day's end.
When the SPX was trading around 1894, before the major collapse I sold the Jan29 1815/1805 put spread for 65 cents, but by day's end it was trading at 1.20. I will need to roll this trade, and sell some calls, if we start to see a big down day developing tomorrow.
I also priced some SPX put spreads for the February expiration, as the extent of this downfall really cannot continue to be so oversold to last another 3 weeks without a bounce. I see opportunities in the high 1600s for selling put spreads.
