Selling EOM September Put spreads on S&P 500

We are seeing a continuation to the liquidation from the past few days on the major indexes. Currently the S&P December 08 futures are trading around 1150. We are looking for the market to bounce off 1140 level. We do not think the market will fall another 10% from here or down to 1020 by the end of the month. We are looking to sell the end of month 1020 SP put for September and buy the 1000 put to limit our risk on the trade. We are looking to collect 2 points or $500 less commission and fees for this position. Risk on the trade is 20 points (1020-1000=20 minus 2 of collected premium = 18.) or $4500 maximum risk plus commission and fees. We would look to close out the position if it gets to 4 points in value.
To discuss setting up a monthly S&P Income generating program for you, give us a call.
908-787-2089
Stephen Zielinski
Mercury Capital Management, LLC
Website http://www.mercury-capital-management.com/
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