Jeff 5:26 am on Wednesday, February 21, 2024
Tags: IronButterfly ( 141 ), spx0dte ( 111 )

SPX 0-dte 2/21/24

#SPX0dte Sold to Open $SPX Feb 21st 4930/4960/4990 #IronButterfly for 18.95, IV 20.1%

Small accounts: 4925/4955-4960/4990 condors for 17.40

Sold a bit earlier than normal so risking premarket moves, with intention of benefitting from premarket volatility drop.

Jeff 5:27 am on Wednesday, February 21, 2024

Should note: FOMC minutes expected at 2pm ET, so vol drop should be slow but hopefully enough for profits before then.
- Jeff 6:33 am on Wednesday, February 21, 2024
  
  Gained a whole dollar from that extra hour, so worth it today.
  - Jeff 7:26 am on Wednesday, February 21, 2024
    
    10% has been hit… I will be closing soon, looking for a bit of a drop.
    - Jeff 7:29 am on Wednesday, February 21, 2024
      
      Closed IC for 14.60, so 2.80 profit
      - Jeff 7:31 am on Wednesday, February 21, 2024
        
        Closed IB for 16.20, so 2.75 profit.
        
        davidm501 8:26 am on Wednesday, February 21, 2024
        
        I took the same IB @ 9:44 for 17.45. Closed @ 10:43 for 15.85, $160 as the day job ramped up a bit and I knew I could not watch for a bit. My suspicion is that Theta would not be much help until the fed minutes come out and I was not planning on hanging on until then.
        
        Are you placing stop orders or handling the stops manually? I am curious how well stops work/how are the fills?
        
        geewhiz112 9:08 am on Wednesday, February 21, 2024
        
        I place an order to close at 15% but if I leave the “arena”. I’ll lower it to 10.
        
        matt0311 9:22 am on Wednesday, February 21, 2024
        
        I also enter the stop order once I opened the trade. Prices can move very fast and I would hate if I just missed my target because I was too slow to enter the closing order.
        
        davidm501 9:25 am on Wednesday, February 21, 2024
        
        I do put in a limit order to close at my profit level. My question is whether folks are using stops to bail when it goes the wrong way and whether they work .
        
        matt0311 9:58 am on Wednesday, February 21, 2024
        
        I see. It depends if your broker would allow you to enter a bracket order where you could enter the stops for loss and win and in case one is triggered the other is cancelled. I wasn’t able to do this as too many legs are involved. Maybe someone else was able to do this in IAB or Tastytrade? I have concentrated on profit orders so far.
        
        Jeff 11:56 am on Wednesday, February 21, 2024
        
        I’m placing LMT orders for profit taking. If my stop is hit I manage manually, but if you must be away you can place STOP limit order or STOP market order.
    - matt0311 7:35 am on Wednesday, February 21, 2024
      
      Today only an IC 4925/4955/4965/4995 for 14.35 @ 6:32, closed just now for 12.70 @ 7:29. Wished I had more than one trade to let the other run a little.
      - Jeff 11:55 am on Wednesday, February 21, 2024
        
        I think splitting the closes is an idea to try. Take half off at 10% and wait for more on the rest, except on days where risk is higher.
        
        davidm501 3:50 pm on Wednesday, February 21, 2024
        
        Then the question is how to determine when the risk is higher. I considered not putting them on when the expected move is > 30, but of course that lowers the collected premium as well.
        So far I am only putting on one at a time, may keep it that way until I actually retire as now there is risk that I may have periods when I cannot keep an eye on the trades. That said, even though I am doing the trades on Tasty I am setting stop alerts on the IB price on TOS
        
        matt0311 4:20 pm on Wednesday, February 21, 2024
        
        Risk avoidance is definitely important. Although I cant remember to have seen an expected move >30 at the opening or a few minutes after (could well be different pre market) I probably wouldn’t enter a trade that time either. Economic releases, Quadruple witching, Bond auctions, and some of the Fed speeches have also a considerable impact on how the day is running and i try to avoid them. If i was to trade during those days, i would be very cautious.
        
        How do you set the stop alerts in TOS? is that based on premium or the SPX price?
        
        davidm501 5:10 pm on Wednesday, February 21, 2024
        
        My notes say that the SPX EM before the open on Monday was 35, today’s was 29. Right now tomorrow’s is 35.516. I have not been watching it before about a week ago so I cannot go further than that.
        The alert is set on the trade price. With the trade ready to go on the Order Entry screen right click on the right hand end of the highlighted bar , same place you click to copy the trade. Create alert is one of the options in the drop-down menu.
        
        matt0311 7:39 am on Thursday, February 22, 2024
        
        Thanks for the alert.
        Still trying to find out about the expected move. I show now , 7:36 PST, Tastytrade at +- 16.93, which I refer to as 16.93. Are we on the same?
        I also poked around with Tastytrade and their orders. Embarrassing, but I found that they do have bracket trades available and it allows 4 legged trades. It is called Bracket (surprise!) which is just left to where you could move the strikes up and down.
        
        davidm501 9:14 am on Thursday, February 22, 2024
        
        You are welcome. As to the EM my notes with time stamps straddling yours by about 4 minutes are 17.59 and 17.09, looks like we are looking at the same thing.
  - geewhiz112 7:29 am on Wednesday, February 21, 2024
    
    $SPX STO 2/21 4940/4970/5000 IB at 18.20 at 9:35. Order placed at 9. Never get fill premarket.
    
    $SPX BTC 2/21 4940/4970/5000 IB at 15.80 at 10:20. 13% of max. I had an order to close at 14 but have things to do and this is a good trade.

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