#SPX1dte Expired: $SPX Apr 22nd 2595/2615-2840/2860 condors, sold yesterday for 1.25.
Something I’ve been trying for a couple weeks but haven’t yet shared because it was in “test phase”… since volatility is here to stay for awhile, I have been buying one-week-out ATM condors with only 10-points between the shorts. The idea is that the market moves, and we most likely will be higher or lower a week from now.
So far it worked five times in a row… then the 6th one today was the first loss! But I’m going to stick with it as long as it continues to work and volatility is with us.
Today’s closing trade:
Last Wednesday, bought to Open $SPX Apr 22nd 2760/2780-2790/2810 condors for 18.35. (opening price has consistently been 18.25-18.40)
Today, sold to close the put side for 3.50 at 9:49am PT. Call side expired at 8.02. Total credit 11.52, so 6.80 loss.
All of the other ones I have done have either expired for 20.00, or closed a day or more early for 19.00+.
It is difficult to have much control over these trades unless you wish to go for pure speculation and leg out on ups and downs during the week. Otherwise you are at the mercy of the market on expiration day. Today was a bit nerve-wracking because SPX hovered in my dead zone for most of the morning. When it started trending upward, I took the profit on put side (first time I have legged out). Call side looked to be a 100% winner until the last 5 minutes, when it quickly turned from a 5.15 winner to a 6.80 loser. If I had exited before the drop i probably could have gotten 17.00 or so maximum, since the short 2810 call kept a lot of value until the last couple minutes of the day.
Bought to Open $SPX Apr 29th 2780/2800-2810/2830 condors for 18.40.
Also currently holding
Apr 24th 2820/2840-2850/2870
Apr 27th 2810/2830-2840/2860