Jeff 5:31 am on Monday, May 20, 2024
Tags: spx0dte ( 421 )

SPX 0-dte trades 5/20/24

#SPX0dte Sold to Open $SPX May 20th 5280/5310-5315/5345 condors for 11.10, IV 12.38%, at 8:28 ET

Probably the lowest IV and lowest premium I’ve sold on this trade before the open. Chain IV on SPX options this week is quite low, with a slight rise on Thursday.

Jeff 6:34 am on Monday, May 20, 2024

10% hit at 9:34… going for a bit more
- Jeff 7:06 am on Monday, May 20, 2024
  
  Stopped out for 13.00, so -1.90 loss
  
  Very irritating but also an interesting lesson when coupled with Friday’s success. The initial spike up at the open dropped me to 10% very quickly (9.90) so I pushed it to 9.50. It likely would have filled at 9.55, but then started consolidating. At this point, premium stayed between 9.65 and 9.90 for over 10 minutes. Premium would simply NOT DROP out of that range, even though it had plummeted for the hour before. Then, the market took off and quickly turned into a loss.
  
  I think this is further evidence that holding for more than 10% is WAY LESS likely to be successful than exiting at 10% and then finding a new entry point later. On Friday, we didn’t have a rise like we did this morning, and it was an easy day to trade neutrally. However, had I exited this morning and waited at least until 10am, I would have seen the upside trend and waited for a new entry, or called it a day.
  - matt0311 7:18 am on Monday, May 20, 2024
    
    this is exactly the same experience I have made. I am more rigorous now and take the 10% when it is available and after that reevaluate the market. I was lucky today, i took the 10% and am watching now.
    I did the same trade as you did, just a few minutes later.
    
    Thank you for sharing your thoughts in so much detail!
    - Jeff 7:44 am on Monday, May 20, 2024
      
      Yeah, I’ve gone back and forth on whether to push it, and today I was only trying to push a little bit. Watching the spread price second by second really drove it home today.
Jeff 7:30 am on Monday, May 20, 2024

Sold to Open $SPX May 20th 5290/5320-5325/5355 condors for 9.25, IV 12.76%
- Jeff 8:40 am on Monday, May 20, 2024
  
  Closed for 8.00, so about 13.5%. Again, maddeningly long time between hitting 10% (about 8.30) and achieving a little bit more.

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