#SPX1dte Bullish day not so bullish, closed put spread for .50 to remove all risk.

Two losing weeks in a row, time for some adjustments. I’m going to go back to selling the afternoon before, 1-dte rather than 0-dte, since there hasn’t been a major overnight move since early July. This will give me better width and less chance of stops being hit. I will still stick to 0-dte on days with major announcements or data releases.

I will also reduce supplemental trades, which were the reason for both of these weeks’ losses being bigger than normal. If I’m have a breakeven or slightly losing week, I will either skip the additional or roll trades, or be much more careful when placing them. Stick to the basics, stop trying to push.

I wrote this yesterday but forgot to press “Post”

#SPX1dte Bought to close call side for 1.45. This week, that’s 1 day without a stop (Monday), and 3 days stops were hit. I have been too gunshy to sell in the afternoon, but we have not seen any large overnight moves. I would definitely get more breathing room on the width if I do this, however, stops would still be hit on at least some of these days. None of the stops have actually breeched my short strike so the stops have ended up being unnecessary, but no matter, need to stick to rules.

I’ve been burned a few times this year by skirting the rules. Even so, when I add up all the premium I DIDN’T need to spend closing spreads that ended up not getting breeched, versus all the money I saved by stopping out per the rules and avoiding breeches, I come out over 10.00 (in premium) ahead on the year. Had I consistently followed the rules and stopped out on all the days, that number would be closer to 40.00.