Trade Alert: Portfolio 2 — Adding another 1x2 Put Ratio

Added a second 1x2 put ratio spread at the same Jun 18 665/655 strikes. Capital-intensive, higher-probability bullish structure — chosen over a call diagonal while vol stays elevated and markets drift

TonyB Commentary

“Structure Matters — Probability Over Direction”

Coming in underinvested and looking to put capital to work, I’m opting for a more capital-intensive, higher-probability bullish structure — specifically, the same 1x2 put ratio spread we initiated a few days ago. Today we layered on a second identical ratio at the SPY Jun 18 665/655 strikes for a $4.25 credit.

Compared to a call diagonal, which expresses a more directional bias and requires the market to move higher to perform, the put ratio spread allows us to lean bullish while benefiting from time decay and elevated volatility — a more forgiving path to profitability.

In this environment, I prefer to prioritize probability over pure directional conviction, especially while volatility remains elevated and markets continue to show mixed signals. This structure lets us participate in a stable-to-higher market while maintaining a more balanced risk/reward profile.

SPY is trading at $711.03 — well above the short-strike zone — so the structure is working with room below and theta in our favor.