Jeff 12:41 pm on Thursday, November 17, 2022
Tags: SPX1dte ( 1,714 ), SPX5dte ( 109 )

SPX trades

#SPX1dte Sold to Open $SPX Nov 18th 3820/3840-4010/4030 condors for 1.15, SPX at 3933, deltas -.06 +.06, IV 25.7%

Jeff 12:44 pm on Thursday, November 17, 2022

#SPX5dte Bought to Open $SPX Nov 23rd 3910/3930-3940/3960 condors for 17.65.
- jsd501 10:05 am on Friday, November 18, 2022
  
  Jeff, I am confused. Are you buying the 3930 and 3940 strikes and selling the wings?
  - geewhiz112 10:39 am on Friday, November 18, 2022
    
    Not @jeffcp66 but that’s what being done. Trying to capture big move up or down. I’ve tried these trades and find them difficult to manage.
    - jsd501 10:49 am on Friday, November 18, 2022
      
      So, risking 17.50 to make 2.50?
      - geewhiz112 10:58 am on Friday, November 18, 2022
        
        Yes! But you would be getting out of one of those early if things go your way. Works best when volatility is high like lately. Rarely lose the entire amount but requires a lot of watching. @jeff probably has a different opinion. But you are risking the entire amount if price does not move much.
        
        jsd501 11:02 am on Friday, November 18, 2022
        
        Ok, got it.
      - Jeff 11:04 am on Friday, November 18, 2022
        
        Yes, that’s the risk, but probability is pretty high that SPX will move in one of those directions at least 25 points in a week. I’ve had decent success of letting them go to expiration day, but there is risk of losing all or a lot. So I have set a new rule to exit on day before expiration at latest. That eliminates big risk, but also makes profiting more difficult.

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