The Bear Put Spread on XLF, opened on January 6, was closed on Thursday morning after downside pressure followed through at the open. After a clearly bearish prior session, XLF traded lower in the premarket and briefly touched the $55.5 area shortly after the bell, triggering my limit order.
The move was sufficient to realize the intended profit without pressing for further downside. With the higher-timeframe trend still constructive, this position was always meant to be a tactical trade rather than something to hold into expiration.
Both legs were closed simultaneously:
Buy PUT 58 exited at $2.68
Sell PUT 56 exited at $1.34
Net result after broker commissions: +$487
Clean execution, objective met, capital released.
Trade Recap
Structure: Bear Put Spread
Underlying: XLF
Expiration: February 20, 2026
Strikes: 58 / 56
Contracts: 15
Entry Cost: $1.00 per spread
Exit Result: +$487 net after commissions
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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.