SPY Credit Put Spread (Bull Put) — Sep 18, 2026
Trade Setup
Current Stock Price
$74.50
Entry Price
$74.50
Target Price
$37.25
Stop Loss
$149.00
Expiration
Sep 18, 2026
Suggested Contracts
1
Strike Details
Sell 733P / Buy 723P
Risk / Reward
Max Loss
$925.50
Max Profit
$74.50
Analysis
SPY (State Street SPDR S&P 500 ETF Trust) presents a credit put spread (bull put) opportunity with moderately elevated implied volatility. IV Rank 32. IV 1458.0% trades 588.0pp above 30-day HV (870.0%). This setup favors net premium sellers.
Sell the $733 put and buy the $723 put for protection. Bullish setup — profits if SPY stays above $733 at expiration. Defined risk equal to the spread width minus credit collected. Underlying ~$734.00, 30 DTE. Max profit $75 per contract, max loss $926, 8.1% return on risk, 85% POP. Breakeven at $732.25.
Management: take profit at ~50% of max profit ($37). Cut at 2x credit ($149 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.
Setup Instructions
Underlying: SPY @ ~$734.00 Expiration: Sep 18, 2026 (30 DTE) Net credit (entry): ~$74.50 per spread Legs:
- Sell SPY Sep 18, 2026 $733 Put (delta -0.15, mid $3.02)
- Buy SPY Sep 18, 2026 $723 Put (delta -0.11, mid $2.27)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~0.7% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($37). Cut loss if position reaches 2x credit received ($149 loss). Roll if tested with > 14 DTE remaining.