Jeff 6:52 am on Tuesday, August 29, 2023
Tags: SPX1dte ( 1,714 )

SPX stopped

#SPX1dte BTC $SPX Aug 29th 4465/4485 call spreads for 1.95. Played with fire by going with 8-deltas today. Will probably sell something else in a little while once we see if this rally has more steam.

Jeff 7:29 am on Tuesday, August 29, 2023

NOTE: Since I have one account under $25K which is at risk of day-trade restrictions, I closed this by making a new trade:

I sold Aug 29th 4485/4465 put spreads for 18.05. This neutralizes the call spread. If SPX continues through and ends above 4485, my call spread will debit my account 20.00 and the put spread will expire worthless. If we end the day below 4465, the opposite will happen. Let me know if anyone wants more explanation on this.
- matt0311 7:46 am on Tuesday, August 29, 2023
  
  sure enough, i would like to know more about it. Thanks.
  - Jeff 7:49 am on Tuesday, August 29, 2023
    
    Do you have the tools to graph your risk profile on a trade to visualize it?
    - matt0311 8:13 am on Tuesday, August 29, 2023
      
      I have TOS as trading software as well as IAB, but am not that good at doing the visualization.
    - matt0311 8:34 am on Tuesday, August 29, 2023
      
      I gave it more thoughts: basically you have collected now 1.40 of the initial condor plus the 18.05 from the bull put spread for a total of 19.45. You are now at risk to lose .55. If the SPX should fall below your initial and still in place short put of 4,390 you would be in pain again. Is that halfway correct?
      - Jeff 10:07 am on Tuesday, August 29, 2023
        
        No pain possible on the upside, it is neutralized. Only risk is on downside of the original trade, the 4390/4370 put spread. It is very rare for market to swing intraday to stop out both sides.
        
        matt0311 10:31 am on Tuesday, August 29, 2023
        
        I like this strategy a lot, wish I would have known earlier. This allows you to reduce your loss by a good amount. Of course you need the extra margin or buying power on your account. Thanks!
        
        Jeff 4:20 pm on Tuesday, August 29, 2023
        
        It is the same effect of closing the trade. It just avoids tripping the day-trade counter
- geewhiz112 8:16 am on Tuesday, August 29, 2023
  
  If the $SPX falls below 4465 won’t that make the trade a bigger loss?
  - Jeff 8:26 am on Tuesday, August 29, 2023
    
    No. I sold for 1.39. I sold the put spread for 18.05. My total credit is 19.44.
    
    Below 4465 the debit against me will be 20.00. Above 4485 debit will also be 20.00.
    Anywhere in between the debits will add up to 20.00. For instance, if we end day at 4470, the call spread will debit me 5.00 and put spread will debit me 15.00.
    
    So I have locked in a loss of 56 cents (20.00 – 19.44 = .56)
    - Jeff 10:08 am on Tuesday, August 29, 2023
      
      I was off by 5 cents on my math, so I edited it.

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