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re: Options Trading Thread
Posted on 11/30/22 at 6:58 pm to DTRooster
Posted on 11/30/22 at 6:58 pm to DTRooster
Basically I sold some SPX short call verticals priced at $9.30 per contract while they were at the 15 delta. Then the market went absolutely insane and the price soared to $34.90 per contract and the delta stands at the 44 delta based on after hours SPX futures pricing. Expiration is 12/9. If things don’t settle back down, I’ll look to do some up (strike price) and out (expiration date) rolls early next week.
As for the SPX 11/30 short call vertical contracts (short calls at 4060) that I had to rush to close just before the market went bonkers… the visual goes something like this: I was standing on the sidewalk with my hands in my pockets, just minding my own business, waiting for the 4:00 bus to peacefully stop and pick me up. Well… darn thing came around the corner like an F1 car, jumped up on the sidewalk and did its best to run me over! Came within inches of crushing me!
Had to chase one series to close the trade out at $1.65 per contract (ended up closing at $18.85) and closed out a different series at 2.90 (it closed at 18.83). Both series were trading for pennies around 2:30. Still profitable trades, but that was a shocking mega rally!!!
As for the SPX 11/30 short call vertical contracts (short calls at 4060) that I had to rush to close just before the market went bonkers… the visual goes something like this: I was standing on the sidewalk with my hands in my pockets, just minding my own business, waiting for the 4:00 bus to peacefully stop and pick me up. Well… darn thing came around the corner like an F1 car, jumped up on the sidewalk and did its best to run me over! Came within inches of crushing me!
Had to chase one series to close the trade out at $1.65 per contract (ended up closing at $18.85) and closed out a different series at 2.90 (it closed at 18.83). Both series were trading for pennies around 2:30. Still profitable trades, but that was a shocking mega rally!!!
This post was edited on 11/30/22 at 7:31 pm
2
Posted on 11/30/22 at 9:09 pm to Jag_Warrior
That made my head hurt, lol. I just want PayPal to take a dump for a little while tomorrow. I’ll have the laptop on the boat with some alerts set so I can eject
Posted on 12/2/22 at 2:08 pm to Jag_Warrior
Following Brobocop's idea, I got a Option Omega backtesting account and a Tastyworks account.
Have done the Iron condors the past two weeks but about breakeven there as they got busted 2 times this week. Not a huge fan of the risk/reward ratio there.
On the Option Omega forum, there is a user that combines three 0DTE iron condors with one double calendar spread (selling 1 DTE options and buying 2 DTE options), and these trades are only done on Mondays and Wednesdays. Backtested since the S&P started doing daily options earlier in 2022, this strategy has a ~90% win rate and the average winner has a higher $ amount ($853) than the average loser $ amount ($540) (compared to iron condors where the average loser is likely 3-4X higher than your average winner). He has a stop loss in place where if a $5 profit target is reached, the trade closes out if the P&L drops below $2.5. You exit the double calendar positions when the iron condor closes out, so every time the trade is opened and closed in the same day.
Very interesting strategy, as the iron condors profit on low volatility while the double calendar P&L maxes out profitability at the option strikes.
Probably tough to execute in real life though as it's an 8 legged trade. I don't think it's the kind of trade where you can just put it on in the morning and forget about it.
Have done the Iron condors the past two weeks but about breakeven there as they got busted 2 times this week. Not a huge fan of the risk/reward ratio there.
On the Option Omega forum, there is a user that combines three 0DTE iron condors with one double calendar spread (selling 1 DTE options and buying 2 DTE options), and these trades are only done on Mondays and Wednesdays. Backtested since the S&P started doing daily options earlier in 2022, this strategy has a ~90% win rate and the average winner has a higher $ amount ($853) than the average loser $ amount ($540) (compared to iron condors where the average loser is likely 3-4X higher than your average winner). He has a stop loss in place where if a $5 profit target is reached, the trade closes out if the P&L drops below $2.5. You exit the double calendar positions when the iron condor closes out, so every time the trade is opened and closed in the same day.
Very interesting strategy, as the iron condors profit on low volatility while the double calendar P&L maxes out profitability at the option strikes.
Probably tough to execute in real life though as it's an 8 legged trade. I don't think it's the kind of trade where you can just put it on in the morning and forget about it.
This post was edited on 12/2/22 at 2:16 pm
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