🎯 Profit Taken: Bear Call Spread – SLV Expired OTM

✅ $550 net profit (100%)

The December 26 Bear Call Spread expired fully out of the money as price stalled after an aggressive vertical run into all-time highs. Despite extreme multi-timeframe overbought conditions, the underlying failed to produce any further upside acceleration during the holiday-shortened week, remaining comfortably below the short strike into expiration.

This was a classic case of momentum digestion rather than reversal. RSI stayed elevated across daily, weekly, and monthly charts, but price action transitioned into consolidation mode. With no expansion in range or volume, upside pressure simply ran out of fuel — exactly the environment where short-duration credit spreads thrive.

Both call options expired worthless, resulting in a full-premium capture with no active management required.

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Trade Recap

Structure: Bear Call Spread
Expiration: January 2, 2026
Short Call: 80C (10-delta)
Long Call: 85C
Contracts: 24
Net P/L: +$550 (after broker comissions)

👉 View on OptionStrat
👉 View in Trade Log

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Final Thoughts

This trade perfectly reflects the core framework: extreme extension, fading velocity, defined risk, and short time to expiration. No bearish forecast was needed — only the failure of price to sustain a parabolic rate of ascent.

Time decay did the work. Probabilities played out.
Full premium captured. Clean execution. Edge preserved.

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Disclaimer  

All content is for informational purposes only and does not constitute financial advice.Any trades or strategies should be tested in a simulated environment before use.Trading involves risk, and all decisions are the sole responsibility of the reader.