Jeff 6:36 am on Wednesday, November 6, 2024
Tags: spx0dte ( 421 )

SPX 0-dte trades for 11/6/24

#SPX0dte Sold to Open $SPX Nov 6th 5810/5790 put spreads for .90, delta -.08, IV 35.44%

Even though we making new all time highs by the minute, still too hesitant to sell a call spread yet.

Jeff 8:27 am on Wednesday, November 6, 2024

Sold 5860/5890-5895/5925 condors for 17.10. Out before 1pm Bond Auction.
- Jeff 8:47 am on Wednesday, November 6, 2024
  
  As I get more used to these trades, I’m becoming more convinced it is better to sell them off center; that is, when the current SPX price is ABOVE the center of the condor. This inflates premium, while the index being BELOW the center deflates premium. The reason for this is that OTM puts carry higher premium than OTM calls. So as we move down, the LONG put in our condor increases more quickly than the long call decreases. This will lower the premium of the overall condor. As we move higher, the opposite happens.
  
  So if we set our stops at the expiration breakeven on BOTH sides, and then sell the condor when SPX price is closer to our call stop, we will lose less money if stopped at the call side. Of course, the risk is a higher likelihood of hitting the call stop quickly.
  - Jeff 9:52 am on Wednesday, November 6, 2024
    
    Stopped for 18.70. Should have taken exit on first pullback when profit was there, but was holding out for 10%. I think I need to more often exit these for small profit and recenter when it immediately moves against me like it did today.
Jeff 9:44 am on Wednesday, November 6, 2024

Closed 5810/5790 put spreads for .10