Jeff 8:10 am on Tuesday, February 27, 2018
Tags: SPXcampaign ( 2,265 )

SPX trades

#SPXcampaign Stopped: $SPX March 15th 2850/2875 call spreads for 2.90. Sold for 1.60 on Feb 15th.

Bought SPX March 7th 2810/2830 call spreads for 3.45. This anticipates an Upside Warning going into effect today, and will profit from the probable strong push higher over the next week.

elitethink 8:31 am on Tuesday, February 27, 2018

Jeff, have you ever looked at just buying the short legs at a predetermined stop, then selling the option again with a reversal signal? I’ve been running back tests, and looking quite good. If you are anyone want to help back test, which is manual, and time intensive as in 8 hours of testing per year of data for me, open to sharing the rules for improvement. thanks. Jay.
- Jeff 8:55 am on Tuesday, February 27, 2018
  
  I’ve never been a fan of breaking up spreads… I got killed by trying that too often in my early days. I’m much better at recognizing swings now, but still usually stay away from it. But I’m always interested in results of others’ trading or back test, so fee free to share.
  - elitethink 9:05 am on Tuesday, February 27, 2018
    
    I agree it outside of a comfort zone. But have been working on trend following option selling for years with success. if an iron fly can turn net long/short systematically, and then go back to neutral and +theta, it would be impressive IMO.
    
    I’m setting up spx iron flys, 15 wide spreads, so they are effectively binaries, buying back the short leg entry + 5, ride the trend, and resell that atm option with a cross and close of 7ma on 15 min bars. Backtests are well into the triple digits per year with small maxdd’s. Market shocks are quite profitable if they happen during trading hours.
    thanks.