MamaCash 9:08 am on Friday, January 18, 2019
Tags: SPYcraft ( 95 )

SPY 21dte IC ladders

Sold SPY Feb8 275/277.5/255/252.2 call/put IC x2 @ .45
Joining the SPY21 dte ladder party with @hcgdavis. Will add a layer whenever a 21dte is available. Starting small but will increase size after I defend a couple to find out how that goes.
#spycraft

Jeff 9:11 am on Friday, January 18, 2019

My bearishness is slipping away. I’m inching toward neutral and will be firmly there if we get the Downside Warning canceled… I’ll turn bullish if we trigger the Upside warning. If that happens, I’ll stop selling the call side of my daily condors for a couple weeks; at least until the rally seems to quiet down.
- MamaCash 9:16 am on Friday, January 18, 2019
  
  That seems super smart. So far, defending by buying back half of the shorts has worked well for me. It gives you a nice directional play in a strong move.
  - Jeff 9:27 am on Friday, January 18, 2019
    
    This happens all the time. The moment everyone decides to get bearish, the rally never stops.
hcgdavis 10:40 am on Friday, January 18, 2019

Another way to defend these is broken wing butterflies. Had I done that earlier this week I could have contained the loss to $80 total on 10 contracts and can set it up so no other risk to upside. I will be looking at this as an adjustment in the future.
- MamaCash 10:57 am on Friday, January 18, 2019
  
  So convert your short spread into a bwb? I’ll look at that too.
  - hcgdavis 1:08 pm on Friday, January 18, 2019
    
    Yes. If you had a 3 point spread could buy a 4 point spread or more and keep the original at 3. For example, at 266/269 calls I could buy the 262 or lower option, sell the 266 at same quantity then you have no risk to upside. You still have the 266/269 credit spread. The trade off is a loss anywhere below the break even but if it pins great returns and if it keeps going make a little.
    - MamaCash 1:28 pm on Friday, January 18, 2019
      
      Super. I’m also looking at unbalanced and broken flies as a defense tactic.
    - Whitemare 1:26 pm on Monday, January 21, 2019
      
      In the example of 266/269 do you mean you already are long 266 or long 269? If you are short 266 and then buy a 262/266 wouldn’t you be increasing your shorts so now you are short 266/269?
      - MamaCash 9:10 am on Tuesday, January 22, 2019
        
        Yes, creating a bwb will double the shorts in this case.

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