Jeff 6:33 am on Thursday, February 29, 2024
Tags: spx0dte ( 421 )

SPX 0-dte trades 2/29/24

#SPX0dte After the open, sold to open $SPX Feb 29th 5065/5095/5125 Iron Butterflys for 18.00, IV 20.93%

Small accounts: 5060/5090-5095/5125 condors for 16.35.

davidm501 7:05 am on Thursday, February 29, 2024

Sold the same IB @ 9:34 for 17.75 Tasty had the IV @22.3, down to 19.0 now
Jeff 7:25 am on Thursday, February 29, 2024

10% hit on the IC pretty early… I think this will become my primary strategy. Didn’t quite get there with the IB yet.
- Hawk 7:52 am on Thursday, February 29, 2024
  
  When you say 10%, is that of the credit received or of the max risk? i know different people do it differently.
  - geewhiz112 12:41 pm on Thursday, February 29, 2024
    
    I do it using the credit received as the denominator.
    - Hawk 1:18 pm on Thursday, February 29, 2024
      
      I know most trading platforms shows return as % of initial debit/credit, but seems to me using max risk may be more fair as the base for returns, which would also show your wins bigger than 10% :-).
      
      I try to widen IB as long as the credit is about 50% of the width, so for me it’s the same either way.
  - Jeff 5:39 am on Friday, March 1, 2024
    
    It’s of credit received…. more of a profit goal, not a percentage of risk. Because risk on an IB is typically LESS than credit received, the % on risk would be higher.
    
    On the 5-pt wide condors, premium is closer to even with risk so the 10% goal can be close for both measures.
- davidm501 7:53 am on Thursday, February 29, 2024
  
  Dropped my target to 7.5% @ 10:30. Out at 10:48 for 16.45. Another 2 minutes and I would have gotten the full 10%.
- Jeff 8:38 am on Thursday, February 29, 2024
  
  I set orders for 2.50 in profit. The IC filled at 7:36 when index was at 5985, 5 points below the short put. We will need a bit more time at this level or a rise by 3 or 4 points to close the IB at 2.50.
  
  So in this case, the IC is 5 points more bearish than the IB. So obviously, the IC will be more favorable if the market is dropping from the open. But even in cases where index moves against the IC, the premium drop is better. This is true, even though we typically get about 2 dollars less when selling the IC. It seems to be the superior structure and I will switch to it exclusively tomorrow.
  - Jeff 8:40 am on Thursday, February 29, 2024
    
    Wow. So I think I WOULD HAVE BEEN filled at 2.50 profit… but as we were creeping toward the fill, I decided to push it. Now I’m underwater.
    - Jeff 9:49 am on Thursday, February 29, 2024
      
      Closed for 16.95, so 1.05 profit. Not proud of this, but relieved the big dip was answered with this bounce.
      - Jeff 5:41 am on Friday, March 1, 2024
        
        And another day with a pin. Had I waited until close both Wed & Thu my profit would be 29 dollars higher this week!

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