SPX 1-dte

#SPXcampaign Still working on this new approach… thought I’d share my big error on today’s spread.

I sold the $SPX Nov 28th 2590/2610-2710/2730 for 1.15 yesterday at 1:38p ET, when SPX was at 2672.

After selling, the SPX creeped higher into the close. Even so, my call spread side did NOT increase much. With the threat of a gap up opening, and a slow rise into the close, I could have closed the calls for about .70, and let puts expire today, for an overall profit on the trade, same day. But it didn’t rise enough to hit my stop, so I opted to stay in.

That turned out to be only a minor error: Consider taking profits same day if volatility drops enough in the last hour to exit with decent profit, and erase overnight risk. But, in this case, the gap up this morning wasn’t bad, and I could have closed at the open for a small loss.

Further more, my call side DID hit its stop this morning, when the expected move touched my 2710 short calls. This means I should have exited, and COULD have exited for a profit on the fade back down to 2685 area. But I didn’t. And as it bounced, I was not focused…. I should have realized the volatility risk with Powell’s comments, but I didn’t and was focused on record keeping and other non-trade issues.

Now I’m 10 points ITM. Faced with possibility of a chunky loss if there’s no fade. Don’t know how I’ll roll yet.

1. Take partial profits if they present themselves early.
2. Follow rules even if you believe that waiting for better exits will work.
3. Focus on market events you KNOW are coming. Don’t get distracted or complacent.