Update on SPY Ladder Strategy….lot of activity….not much to show for it yet….

The SPY Ladder Strategy is not contributing much to the account….so far. Hopefully things will improve with experience.

We started the ladder in Feb selling March IC’s. As we approach 21 DTE we close and open new positions 45-50 days out (if available). We have opened 302 positions……600+ trades including closing. So far Schwab is making more money than I am! Commissions are slightly higher than the profits so far.

What am I learning….

  1. It is really hard not to adjust….which I should not be doing. Adjusting takes incremental investment. The IC’s are each defined risk….and I should let them ride. I have rolled up the untested side on a number of occasions but the end result is narrowing the spread of the body. When the SPY moves in the other direction it doesn’t take long to put the rolled position under pressure.
  2. Need to establish wider “width” in the IC body. At least 30 delta. Premiums are much more attractive at 20…..always tempting to go narrower.
  3. Very hard to make money if volatility goes below 15 when establishing a new position. Need to be more disciplined and refrain from new positions with SPY IV at 12-13.
  4. Positions are carrying unrealized gain of $2,547……which is promising if we can realize a good percent of it.
  5. Schwab platform isn’t the easiest to work with when rolling spreads….figuring out how much a credit for the untested side so you know how much you can spend rolling up the tested side without incremental investment…time consuming with lots of “fiddling”. If you have suggestion on how to do this better in Schwab feel free to comment! It looks much quicker on TT….I have gotten quicker and now have an IC Roll Layout with two All-in-one boxes open on the right and the positions on the left.
  6. I started increasing the sizes….initially they were 2 and 3 contracts….now 5 to 8.
  7. Need to get better with establishing skewed positions…

Graph below shows the daily P/L for the strategy. Table on the right is profit and return. 8% annualized return needs to improve. Would like to get this to a minimum of 20%. Willing to take on higher risk (bigger positions) if the return can be improved.

Hope this is interesting for some of you. No plans to stop yet…….

#iron-condor, #spyladder


#ShortPuts – Based on IV over the next few weeks BIIB must have some sort of a drug announcement coming. It’s still too early for earnings to drive that type of expected move. I’m treating it like an earnings type of event and selling the week before. Selling down at 6 month lows and at the expected move.

Sold BIIB JUN 4 2021 245.0 Put @ 3.20


LABU Put Close

$LABU BTC 5/28 63.5 put at $#. STO at $7.59. Thank you @fuzzballl

NVDA earnings

#ShortPuts – A little more aggressive in a different account than yesterday. Going with the Lizard with no upside risk. A down move but less than expected would be perfect.

Sold NVDA JUN 18 2021 575.0/640.0/650.0 Jade Lizard @ 10.25


#ShortPuts – Adding one to average down a little.

Sold LABU JUN 18 2021 50.0 Put @ 2.20

SPX trades

#SPX7dteLong Sold to close $SPX May 26th 4170/4190 call spreads for 16.10. Leaving put spreads for later this morning. Cindors bought for 16.65 last Thursday.

Locking in just shy of breakeven, with put spreads still open. We still have not cleared the Downside Warning so market does not seem ready to take off again. I’m being more proactive with closure after a few weeks of poor results from waiting.