Tim Biggam's SPDR S&P 500 ETF Trust Trade

Speaking on Bloomberg Markets, Tim Biggam of Delta Derivatives shared with the viewers his options trade in SPDR S&P 500 ETF Trust SPY.

He thinks the ETF won't trade above $220 and he wants to sell the November 220 call and buy the November 222 call for a net credit of $0.26. If the stock doesn't trade above $220 at the November expiration Biggam is going to earn his maximal gain of $0.26. The trade starts to lose money at $220.26 and he can maximally lose $1.74.