Jeff 7:38 am on Friday, February 16, 2024
Tags: IronButterfly ( 141 ), spx0dte ( 421 )

SPX 0-dte 2/16/24

#SPX0dte Sold to Open $SPX 4995/5025/5055 #IronButterfly for 17.845

Small accounts: Sold 4990/5020-5025/5055 condors for 16.20.

Sorry I forgot to press “Post” on this but the trade was placed at 6:37am

Jeff 7:39 am on Friday, February 16, 2024

@matt0311 Have you noticed a better performance from the 5-wide condors than the IB’s? It seems they reach profit target more quickly and easily.
- matt0311 7:48 am on Friday, February 16, 2024
  
  Yes, i did realize that as well. Today i went with an even wider 4980/5010/5030/5060 and got good premium. But I will not make any profit as I screwed it up and closed at the low for a loss. This was a user error. Yet it proofs that the IC can get into profit quickly and at decent rates.
  - Jeff 8:12 am on Friday, February 16, 2024
    
    Did you have a stop point that was hit, or did you get uncomfortable with the drop?
    - matt0311 8:39 am on Friday, February 16, 2024
      
      Just became uncomfortable with the stop. It was at about 3 loss and I entered the order. the fill was at a 2.40 loss and at that point I knew I messed up. Stops are darned hard!
      - Jeff 8:41 am on Friday, February 16, 2024
        
        The prices move very fast on these structures because you’re usually ITM.
Jeff 7:51 am on Friday, February 16, 2024

Condor closed for 14.55, so 10%
- Jeff 8:07 am on Friday, February 16, 2024
  
  10% on IB hit at 8:05. Holding out for a biut more but won’t be foolish like yesterday.
  - Jeff 8:22 am on Friday, February 16, 2024
    
    Closed IB for 15.85, so about 11%. Flat for the day. Loss on the week due to Monday and Thursday, and my push to get more than 10%. Had I stuck to a 10% rule my weekly profit would have been over 6.00. This will certain inform my execution of this strategy going forward.
davidm501 8:12 am on Friday, February 16, 2024

#SPX0dte Hello Jeff and crew. I’ve been following forever, have not posted in years. Finally retiring soon and looking for a reasonably reliable way to make a few bucks and run away after a half day or so most days so I can have a life. Picked this IB to try and track for a bit. So far what I am trying is opening the trade ATM a bit after the open after the initial move. Today it was 9:38, STO $SPX 4990/5020/5050 @18.10, looking to close @16.30 for 10%. Make that closed @ 11:03 for 16.30. I’ll be checking out the IC as well. I’ll be following this discussion and commenting if I can add value.
I’ll mention that my son has recently started day trading, doing very well considering everything. He has been focused on selling SPX butterflies for a month or 2 and would be killing it if he could get a better handle on risk management.
- Jeff 8:31 am on Friday, February 16, 2024
  
  Great to hear of your experience. I only started trying these ATM 0-dte butterflys two weeks ago, after Matt posted about his testing of the strategy that he first saw on TastyTrade. I had been doing 1-dte or 0-dte condors for about 3 years, but found it much more restrictive in the past 9 months, and losses from the latter half of 2023 eliminated my strong profit from 1Q23. The IB strategy seems to be better than 6-delta condors in that…
  
  1. 10% profit nets more return… averaging around 1.60 instead of 1.00
  2. Can usually be closed in first couple hours of the day, so risk is on for less time
  3. Is less risk because of premium taken in when trade is opened. About 11-16 dollars of risk on IB’s with 30-wide wings, versus about 18-19 risk on condors with 20-wide wings.
  
  Hope to see your posts in the future and encourage your son to join us!
geewhiz112 8:34 am on Friday, February 16, 2024

At 9:32
$SPX STO 2/16 5000/5030/5060 IF at 18.65
At 11:19
$SPX BTC 2/16 5000/5030/5060 IF at 15.10 19% profit.

At 9:50 after first green candle (wrong one to pick – next one was better)
$SPX STO 2/16 520/510 BUPS at 4.00
At 11:46
$SPX BTC 2/16 520/510 BUPS at 2.50 38% profit

Many thanks to @jeffcp66 @matt0311 and tastytrade for their research.

Even though TastyTrade showed let it expire a good strategy, my only loss on these trades was letting it expire. Caused by greed. Don’t fall for it. 10% on these premiums is a nice return. PS Nothing lasts forever. Be careful and maintain risk discipline.

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