Jeff 12:45 pm on Wednesday, February 6, 2019
Tags: SPX1dte ( 1,714 )

SPX 1-dte expiring

#SPX1dte $SPX Feb 6th 2710/2690 put spreads expiring worthless. Sold yesterday for 1.10.

MamaCash 12:52 pm on Wednesday, February 6, 2019

For me another day where I defended the call side and would have been much more profitable if I’d left it alone. That’s four out of five defensive moves that were unnecessary.
- Addy 1:12 pm on Wednesday, February 6, 2019
  
  These trades quickly make you think you are losing and you close them quick early. I would do like you and closing them early. I usually calm but after 10/10/2018 (my black Wednesday), when I lost what I gained for the a year, I became hesitant trading and quick close the trades early.
  
  Jeff very good for this trade.
  - MamaCash 1:29 pm on Wednesday, February 6, 2019
    
    Actually, I don’t close them early. I change the trade structure to minimize risk and in some cases maximize profit.
- Jeff 1:22 pm on Wednesday, February 6, 2019
  
  You defended call side today?
  - MamaCash 1:28 pm on Wednesday, February 6, 2019
    
    No, I defended yesterday when it was within $10 of breach. I thought the UpW might come on a little faster. It turned a nice profit into a small profit but all good.
- hcgdavis 5:19 pm on Wednesday, February 6, 2019
  
  Yeah, seems like the defended trades don’t keep moving, so from that stand point the options seem to be priced fairly for a 1 STD move.
  
  For that reason I will probably defend more with a butterfly than a back ratio. I may not get the huge directional move but at that point lock in profit or loss and can reset.
  - MamaCash 10:03 pm on Wednesday, February 6, 2019
    
    Yes, I defended this one with a butterfly. That works really well most of the time.
    - elitethink 9:40 am on Thursday, February 7, 2019
      
      I had a 3.00 stop and 3.10 limit btc for tomorrow’s 2700x2690p and it blew right through. Manually closed for 4.55d .
      
      so instead or risking 1.00 point to make 2.10 I risked 2.45 to make 2.10. I’m really starting to question the model’s viability. I’m 3 months in and still 15% under water for the model.
      
      jay.
      - Jeff 9:50 am on Thursday, February 7, 2019
        
        I’m a firm believer you cannot use automation for spreads, especially SPX with such wide bid/ask. I have never done it. I close all spreads manually. It is especially important on the short-term SPX1dte spreads. You can go from 1.00 to 8.00 in a matter of minutes. You have to be present to manage this stuff, especially in the new reality of Trade Wars, where anyone will say anything at anytime that will cause massive swings.
        
        elitethink 10:42 am on Thursday, February 7, 2019
        
        great points, but imo automation is more reliable than manual, and manual is an easy back up plan. I also get text messages with price breaches. I’m using ES and the spreads are small and work overnight. It might not guarantee a gap remedy, but it there is a chance.

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