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re: Options Trading Thread
Posted on 12/8/22 at 8:54 am to Jag_Warrior
Posted on 12/8/22 at 8:54 am to Jag_Warrior
Checking in gang!
Yeah, when VIX contracts low near the teens like it has in the first part of Dec, it becomes more difficult to capture premium, and get further out.
I was unable to trade Monday due to travel, but I played Tues, and it was a ~$445 Loss.
I've posted my trade log since Nov 3. The strategy was +$1,477 in the month of Nov, and is -$182 through 3 trading days in Dec.
This is trading 1 Lot. >17% Return on Capital.
Yeah, when VIX contracts low near the teens like it has in the first part of Dec, it becomes more difficult to capture premium, and get further out.
I was unable to trade Monday due to travel, but I played Tues, and it was a ~$445 Loss.
I've posted my trade log since Nov 3. The strategy was +$1,477 in the month of Nov, and is -$182 through 3 trading days in Dec.
This is trading 1 Lot. >17% Return on Capital.
3
Posted on 12/8/22 at 9:14 am to Brobocop
Great work!
Posted on 12/8/22 at 9:31 am to Brobocop
Thanks Brobocop. Nice work.
I was listening to Josh Brown late last week and he made the point that whenever the VIX settles into the 20-sub 20 range, the market has consistently sold off shortly thereafter. So I skewed my short synthetic SPX strangles heavily to the call side. Lowest short calls were at 4100. Ol’ Josh was dead on! Like clockwork, the markets cratered on Monday and continued downward. All those trades turned bright green by yesterday.
Actually threw on a couple of 0DTE SPX short put verticals yesterday at 3915 based on some technicals. First time in a VERY long time that I’ve done that. But it worked out well enough. Requires watching closely though.
With the recent daily volatility, I wouldn’t be unhappy with the slight P&L loss you’ve had so far. That’s not bad at all for that type of short dated strategy.
I was listening to Josh Brown late last week and he made the point that whenever the VIX settles into the 20-sub 20 range, the market has consistently sold off shortly thereafter. So I skewed my short synthetic SPX strangles heavily to the call side. Lowest short calls were at 4100. Ol’ Josh was dead on! Like clockwork, the markets cratered on Monday and continued downward. All those trades turned bright green by yesterday.
Actually threw on a couple of 0DTE SPX short put verticals yesterday at 3915 based on some technicals. First time in a VERY long time that I’ve done that. But it worked out well enough. Requires watching closely though.
With the recent daily volatility, I wouldn’t be unhappy with the slight P&L loss you’ve had so far. That’s not bad at all for that type of short dated strategy.
Posted on 12/8/22 at 11:21 am to Brobocop
One interesting trend with this trade, according to the backtesting on Option Omega, is that on Thursdays this trade (0dte 5 delta iron condors) has worked 100% of the time. Curious if that's just a fluke or if there's some intuition behind why that would be the case. Usually Wednesdays are Fed meetings, Fridays have high volatility especially on opex days, etc.
So a better strategy might be to trade 5x the contracts on Thursday and not trade on the other days of the week.
So a better strategy might be to trade 5x the contracts on Thursday and not trade on the other days of the week.
This post was edited on 12/8/22 at 11:25 am
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