Jeff 11:39 am on Tuesday, April 11, 2023
Tags: Expiring

SPX 1-dte

#Expiring: $SPX Apr 11th 4025/4045-4155/4175 condors, sold yesterday for 1.20

No trade yet for tomorrow; I will place one after the CPI report is released in the morning.

jsd501 11:45 am on Tuesday, April 11, 2023

Nice trade, how did you settle on +6,-6 delta as your entry? It seems to work very well.
- Jeff 11:46 am on Tuesday, April 11, 2023
  
  Not sure if I can remember. I know I got the idea of next-day condors from someone else, but I think they were more conservative than I am, going with .03 to .05 deltas. I wanted more premium and found that .06 was the lowest delta that provided it (between 0.85 and 2.00).
  - walter6871 12:54 pm on Tuesday, April 11, 2023
    
    i have last 3 months experimented with spy 7dte .I have found delta -6 to be optimum. Usually puts on days when spy dips 3-5 dollars in the morning mostly ,and days on major up days will sell calls. 4 dollars wide and collect 13.00-14.00. Theta burns very quick and I let it expire.
    
    Knock on wood have not been pressured to roll or take loss.
    - Jeff 1:07 pm on Tuesday, April 11, 2023
      
      So you’re risking about $386 to make $14? Profit is only 3.6% of max loss.
      My trade seeks to win about 1.20 while risking 18.80, which would be 6.38%.
      
      If your trade is working without any stops, then it seems solid, even though your P/L ratio is pretty low. But keep in mind one blowout move could wipe out the previous 27 wins.
      - walter6871 1:57 pm on Tuesday, April 11, 2023
        
        I agree, and cautiously and steady take on more contracts and can get the 3.6% return on capitol. I try 4 times a month on that capitol.
        
        Of course the one day I switched over and tried your method which is excellent return and hope to be Mechanical took a whipping and wasn’t prepared to back pedal or fix trade.
        My snapshot at time of trade is also 95% ish percent being out of the money.
        
        Here is my range of risk and return an of course higher return more risk.

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