geewhiz112 11:52 am on Tuesday, November 21, 2023
Tags: SPXcampaign ( 2,265 )

$SPX 0DTE

#spxcampaign
$SPX STO 11/21 4510/4515 BUPS at .90. Sold after the morning dip. BTC for .05. Thanks to @fuzzballl for the $5 wide idea and always to @jeffcp66 (aka the Father of the SPX trade). I’m obviously missing something, but the 5 wide seems to have good premium vis a vis the 20 wide with much lower downside when all goes Poof! ??????

MikeL 12:49 pm on Tuesday, November 21, 2023

It looks like your short put was about 20 Delta. That is the reason for the high premium.
I think Jeff targets 8 Delta puts.
- geewhiz112 1:20 pm on Tuesday, November 21, 2023
  
  Thank you.
fuzzballl 2:09 pm on Tuesday, November 21, 2023

The 5 wide is great but does require legging in since they are slightly more directional than Jeff’s. I like them since if you can get in both sides at some point it’s practically risk free using the repair strateegery. If either side is breached you can usually get at least 3 bucks on the repair to go with about 1.50 on the leg ins. Even though strikes are tighter you can stay in the trade right up until it’s obviously wrong. No stopping out just sell the other side and move on.

YMMV we’ll see tomorrow if I have to do it. So far so good though. NVDA doesn’t look like a market mover (yet) so fingers crossed.

EDIT: After further review…legging in I got 75 wide between my short strikes compared to Jeff’s 80 wide selling the night before or the morning of. Legging in is definitely the way to go if using the 5 wide wings I think. And of course I was selling an extra day out. Lots of moving parts in these for sure.
- matt0311 3:45 pm on Tuesday, November 21, 2023
  
  when you say legging in, are you trading before market opens as well or only during market hours?
  - fuzzballl 4:39 pm on Tuesday, November 21, 2023
    
    I’ve only done it during market hours. I’m not even really sure how to do it pre market but it could help if we get a big pre market move. Have to look into that closer. Thanks!