hcgdavis 7:30 pm on Tuesday, November 7, 2017
Tags: SPXcampaign ( 2,265 )

Fear the chicken!

#spxcampaign

whitemare 9:04 am on Wednesday, November 8, 2017

Am replying here because I’m not a Contributor, and your posts that I copy-pasted from last night seem to have disappeared.
You were discussing with Jeff about SPY iron condors–here’s part of your post…
“Yeah SPX European exercise. Could also do /ES but this is a small IRA account, just over 5k but I want to try and double it in a year so I think SPY would be more efficient from a bid-ask ratio.
I will do a few 3-5 point spreads on SPY, start about 30 DTE, add a new set each week and see how it works. Probably target 16 delta or so each side on the short side. When one goes ITM will see how easy it is to adjust. The liquidity is there.”

My question is what about using /ES future options instead since the span margin is more advantageous. Maybe you can’t do that in an IRA, not sure. But in general, what would be the pros and cons of /ES options versus SPY for a small account? Also, how about being more aggressive on the delta when trend and upside warnings are in your favor for the put credit side; and being very timid for the call side in same conditions, even leg in to calls only when there is justification from indicators peaking ?
- hcgdavis 10:55 am on Wednesday, November 8, 2017
  
  I have done some credit spreads in the /es and yes preferential margin and tax treatment. The issue with going out 30-45 days is it takes almost until expiration for the decay to have enough of an impact, especially on the put side because of the persistent put skew since black monday.
  
  Also this particular account I can’t trade futures options (tradestation).
  
  But yes, adding a directional bias to the trades would likely increase returns at the expense of increased losses if it moves against you. As long as you were ready to hedge.
  
  The other issue is rolling. Some platforms do not allow rolling futures options if the option is in a different expiration than the future itself.
  
  I have not been posting the trades but I will occasionally short strangle the /es then go directional with the futures if there is a prolonged move. I don’t have any on at the moment but next one i will post.
  
  A little short on margin at the moment to do it.
  
  I will sometimes leg in as you mention, puts side on way down, call side on way up.
  
  Will start the SPY experiment next week, waiting on WDC CC to close.
whitemare 9:06 am on Wednesday, November 8, 2017

#spxcampaign

sorry, reposting with hashtag

Am replying here because I’m not a Contributor, and your posts that I copy-pasted from last night seem to have disappeared.
You were discussing with Jeff about SPY iron condors–here’s part of your post…
“Yeah SPX European exercise. Could also do /ES but this is a small IRA account, just over 5k but I want to try and double it in a year so I think SPY would be more efficient from a bid-ask ratio.
I will do a few 3-5 point spreads on SPY, start about 30 DTE, add a new set each week and see how it works. Probably target 16 delta or so each side on the short side. When one goes ITM will see how easy it is to adjust. The liquidity is there.”

My question is what about using /ES future options instead since the span margin is more advantageous. Maybe you can’t do that in an IRA, not sure. But in general, what would be the pros and cons of /ES options versus SPY for a small account? Also, how about being more aggressive on the delta when trend and upside warnings are in your favor for the put credit side; and being very timid for the call side in same conditions, even leg in to calls only when there is justification from indicators peaking ?