Zero Cost Basis Trade…

Zero Cost Basis Trade…

Posted On March 11, 2021 11:54 am

Yesterday, my inbox exploded with questions about a triple roll trade in SPY that we entered in Options360 on Monday, and I explained in detail yesterday. 

I’m not going to dig into the trade again, I gave you an in-depth breakdown already, but I do want to address some common questions about it. 

What amazed people so much about the trade is that it looks like, by next week, we will be able to exit the trade on a zero-cost basis.  

That means ANYTHING we sell the position for will be profit.  

Even if the original position is down when we sell it will be profitable. (No guarantees – but that is how it is looking right now.)

Take Advantage of These Kinds of Trades with Your $19 Options360 Trial Membership

Here’s how that works…

We entered a longer-term trade and immediately started selling short-term call options against the original position. Because there are 3 expiration dates per week, we’ve been able to sell 2 short-term positions against the underlying longer-term trade.  

Again, I explained all of this in-depth yesterday. 

At this point it appears, no guarantees, that we will be able to collect enough premium by Wednesday of next week to completely offset the cost of the longer-term trade…

Making the original trade FREE!

That means as long as the underlying position is not worthless when we exit, we will have a winning trade…

Even if the underlying trade is selling for less than we originally purchased it for.   

I am looking for more trades like this because the strategy is a particularly strong strategy in this market – with the wild intraday swings we are seeing.  

If you want to jump on board and take advantage of this kind of “zero-cost basis trades,” I suggest you grab your $19 trial subscription to Options360 right now!

To Your Success,



About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.