Jeff 5:52 am on Thursday, March 14, 2024
Tags: spx0dte ( 421 )

SPX 0-dte 3/14/24

#SPX0dte Sold to Open $SPX Mar 14th 5145/5175-5180/5210 condors for 15.25, IV 18.29%

20-winged test going for 12.40

davidm501 6:44 am on Thursday, March 14, 2024

@ 9:30 SELL -1 IRON CONDOR SPX 100 (Weeklys) 14 MAR 24 5180/5210/5175/5145 CALL/PUT @14.20 LMT
Bracket to close:
Limit: 12.75
stop limit : 16.75/17.05
- davidm501 6:49 am on Thursday, March 14, 2024
  
  Stopped out. $285 loss. Guess I don’t have it right just yet. 😦
  - matt0311 7:02 am on Thursday, March 14, 2024
    
    I am not sure you don’t have it right yet: you had a bracket order which saved you from a much higher loss. The move was very strong. I wasn’t ready yet to the down move and was chasing to get out, cost me about 500. Note to myself: use bracket orders!
    
    But still would like to know what really happened.
    - davidm501 1:23 pm on Thursday, March 14, 2024
      
      Of course you are right about saving me from the higher loss. My concern is that the losses are at least twice the gains so the win rate needs to be pretty high for this to work. It has been easily high enough until this week.
  - Jeff 12:50 pm on Thursday, March 14, 2024
    
    Matt brings up a good question, David. Can you list the price paid on your exit so we can see the effectiveness of your bracket order execution?
    - davidm501 1:05 pm on Thursday, March 14, 2024
      
      $17.05. At the limit order.
      
      I did one on my second run as well. Stop limit 13.20/13.40. Executed @ 13.40.
      
      I have not used stop limit orders in the past, or at least not much. Tough to know how wide to make them. I also set an alert at the stop price so I can check to assure they actually execute. So far 2 for 2.
      - davidm501 1:37 pm on Thursday, March 14, 2024
        
        I should point out-Tastytrade does not allow Stop Market orders on this trade. Also, once the bracket order is initially in place it becomes 2 separate orders, the limit order and the stop/limit order. This is handy as they can then be adjusted separately.
        I also have a spreadsheet set up to quickly provide the numbers for the common percentages that I am using. Now if I can just consistently make money with it…
Jeff 7:18 am on Thursday, March 14, 2024

Stopped out for 18.00, so -2.75 loss. Got another bounce, but this one doesn’t look as strong as Tuesday’s bounce.
- Jeff 7:25 am on Thursday, March 14, 2024
  
  I wasn’t watching the test trade, but by the looks of it, the 20-winged was down only about 1.60 when I paid 2.75 to close the 30-winged. Interesting data point. Less risk, lower profits, but also less loss when stopped out.
- matt0311 7:28 am on Thursday, March 14, 2024
  
  Did you ride it all the way down to 5,140?
  - Jeff 7:51 am on Thursday, March 14, 2024
    
    Yes, the move was too quick down. I think max loss I could have taken was about 7.00, closing for over 22.00. I set exit order for 20, then adjusted to 19, then 18, then 17… and then back to 18.
    
    I think we have to realize that on any day we have a market collapse we may get stuck with a pretty big loss. Hopefully we can steer clear of this by avoiding this strategy during Downside Warnings, or at least trade it much more cautiously.
    
    I was up over 1 dollar at the open today, and I gained that in only 40 minutes from my 5:50 entry and the 6:30 open. If the big moves are incurring intraday and not before the open, it may be wise to shoot for this kind of pre-market profit in volatile markets.
    - matt0311 7:56 am on Thursday, March 14, 2024
      
      well done.
davidm501 11:21 am on Thursday, March 14, 2024

Not following my rules, I sold another @11:14
SELL 1 IRON CONDOR SPX 100 (Weeklys) 14 MAR 24 5190/5160/5155/5125 CALL/PUT @14.55 LMT
Got out @ 13.40. 9%/$135 gain ignoring commissions. Not planning on making a habit out of this, although the article GeeWiz posted on Monday did lean towards later in the day. Of course that does not help the get out by noon part of my plan.
- Jeff 12:48 pm on Thursday, March 14, 2024
  
  Tasty Trade guys talk about doing this trade multiple times in the day, but I’ve never seen a paper example
  - davidm501 1:15 pm on Thursday, March 14, 2024
    
    I saw the price sitting still for a bit and thought it worth a try. Of course I could have gotten killed.
    I initially set my limit/bracket as I have been doing. This time once I had a little room I moved the limit and the bracket down to lock in a .75% gain with the stop and moved it again to lock it in at 9%, upping the limit order as well. I may have gotten the full 10% if I left the original bracket order in place but I have been thinking about how to capture the larger gains while still limiting risk and thought I would give it a try.

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