Jeff 9:26 am on Monday, March 4, 2019
Tags: RiskReversal ( 86 ), SPX1dte ( 1,714 )

SPX 1-dte dream shattered

#SPX1dte Major suckage… Stopped $SPX March 4th 2770/2750 put spread for 4.60. What started as a brilliant #RiskReversal turned out to be my biggest loser since December (about 3.00 loss, after all accounted for).

To be expected once you get comfortable allowing spreads to expire. The first time volatility comes back it will take a bite.

Jeff 9:34 am on Monday, March 4, 2019

And of course, closed at the lows!
- kp 10:09 am on Monday, March 4, 2019
  
  jeff. i find its best to close these at .05 or .10. if possible just for piece of mind.
  kp
  - Jeff 10:29 am on Monday, March 4, 2019
    
    Yes, that is a discussion Mama and I had last week. I definitely look to close when markets are touchy, but with small premium taken in on these trades, the closes and commissions can lower your P/L significantly. I’ve had many of these expire for the last two months. Today’s put spread had no chance of being closed for .10, but .20 was probably doable a few minutes after the open. Regardless, I wasn’t even considering the chance we’d breach, otherwise I would have been out for cheaper when we hit flat-on-day.
    - kp 12:01 pm on Monday, March 4, 2019
      
      jeff the 2770 was offered at .10. you could’ve bought thoes. sometimes you just need to cover the short leg.
      i didn’t do it. but i almost pulled the trigger.
      kp
geewhiz112 1:02 pm on Monday, March 4, 2019

I used to keep many of my spread trades too long. I no longer have that tendency. I know my P&L takes a hit, but the hit for closing early is much lower than the potential hit of YIKES what happened!!! Thanks for all your support.