Options positioning and volatility structures can be used together to generate unique trade opportunities. On August 7, SpotGamma’s Equity Hub showed SpaceX holding above the Put Wall at $100, which had remained in place through the company’s first earnings report and initial lockup expiration.
At the same time, SPCX implied volatility was in backwardation, with shorter-dated options carrying more expensive volatility than longer-dated expirations. That structure helped SpotGamma Contributor Doug Pless build a bullish mixed-expiration trade designed to sell richer short-term volatility while maintaining longer-term upside exposure.
HIRO confirmed the bullish setup after the open as traders bought calls and sold puts, creating positive dealer hedging pressure. Doug entered a long October $90 call and $120 protective put, then sold an August $150 call as SPCX advanced toward the Call Wall.
After holding the position for three weeks, the short call expired worthless. Doug exited the remaining position on August 28 as implied volatility continued to decline, locking in a $729 profit.
Author: Doug Pless
Professional Trader & SpotGamma Content Contributor
| The Setup | The Tools | The Execution | The Payoff |
| Instrument: SpaceX (SPCX) Options Trade Type: Multi-week bullish mixed-expiration options trade Bias: Bullish continuation Support: Put Wall remained at $100 or higher through earnings and the first lockup expiration Thesis: SPCX would hold above major options support after two key events, and the stock could continue higher if real-time options flow confirmed bullish pressure. | Equity Hub • Showed the Put Wall holding at $100 or higher • Provided 10-day history of key SpotGamma levels • Revealed implied volatility in backwardation Volatility Dashboard • Revealed implied volatility in backwardation HIRO • Showed traders buying calls and selling puts after the open • Indicated positive dealer hedging pressure • Confirmed the bullish directional thesis in real time Options Calculator • Modeled the mixed-expiration position • Helped evaluate risk, profit potential, and volatility exposure | Initial Position: Bought Oct. 16 $90 call and Oct. 16 $120 put Call Delta: Approximately 85 Protection: The $120 put was added to limit downside exposure Adjustment: Sold Aug. 21 $150 call for a $4.05 credit as SPCX moved toward the Call Wall Management: Held the position for three weeks while monitoring price and implied volatility | Initial Profit Potential: Approximately $1,500 Short Call: Expired worthless Exit Date: August 28 Exit Reason: Implied volatility declined across expirations, reducing extrinsic value in the long options Result: Doug exited the position for a $729 profit |
- The $100 Put Wall established a durable support zone, remaining in place through both earnings and the first lockup expiration.
- The Volatility Dashboard’s Term Structure helped shape the trade, with backwardation favoring the sale of relatively expensive shorter-dated volatility.
- HIRO confirmed the bullish thesis and indicated an entry point, showing call buying, put selling, and positive dealer hedging pressure.
- The mixed-expiration trade returned $729, with the short call expiring worthless before Doug exited as implied volatility continued to fall.
Need a quick term check? Head to the Support Center — it’s your cheat sheet for SpotGamma tools and market terms.
