The back story: On Monday, I wrote about my interest in the Financial Select Sector SPDR (XLF), and how I was looking to buy Dec. 15 $45 call options if the ETF crossed back above and held its 200-day moving average.

See Davis Martin’s Monday article on why he was trading the XLF

How it played out: I wound up buying to open 45 XLF Dec. 15 $45 calls at $0.56 each. Yields remained calm, markets were green and I sold Tuesday at $0.63 for a nice 11 percent gain overnight. Had I held a few minutes more, the gain would have been bigger.

What’s next: With banks paying next to nothing in interest rates these days, I love treating this bank trade as my personal piggy bank. There’s nothing wrong with trading the same securities again and again if you’re making money.

This opportunity has passed on XLF, but I’ll keep watching it to set up another trade.


Davis Martin is the head trader at He trades SPY calls and puts and swing trades individual stocks and stock options. At the time this article was published on, he had no shares, options or open orders on XLF, having traded Dec. 15 $45 calls on Monday and Tuesday of this week.

Author: Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the weekly podcast WealthWise where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share the wisdom needed to live a wealthy life.

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