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re: Options Trading Thread
Posted on 1/7/23 at 4:52 pm to Jag_Warrior
Posted on 1/7/23 at 4:52 pm to Jag_Warrior
Let us know what you end up placing with spx. Feels like things have turned temporally bullish so you should be fine with anything below 380 for the next few weeks imo.
1
Posted on 1/9/23 at 5:31 pm to LSUtoOmaha
On SPX, I legged into a couple of 1/13 short syn. strangle/iron condors before the sell off today: 4110c/3775p and a 3755 short put spread late in the day.
Needless to say, the deltas on the strangles are out of whack now. Sitting on a near 16 delta on the short put side (about 2 on the short call side
). Not dangerous territory, but about double where I put it on.
Needless to say, the deltas on the strangles are out of whack now. Sitting on a near 16 delta on the short put side (about 2 on the short call side
). Not dangerous territory, but about double where I put it on. Posted on 1/9/23 at 9:25 pm to Jag_Warrior
Those should turn out fine. I still think we turn back up by end of the week
Posted on 1/9/23 at 9:49 pm to LSUtoOmaha
I won’t get concerned until the deltas begin looking truly ugly. Won’t be the first time. It happens.
But with earnings season approaching, I’d like to not get tied up doing multiple up & out rolls on these SPX positions. Synthetic strangles tie up a fair amount of buying power reduction.
But with earnings season approaching, I’d like to not get tied up doing multiple up & out rolls on these SPX positions. Synthetic strangles tie up a fair amount of buying power reduction.
Posted on 1/11/23 at 11:22 am to Jag_Warrior
Both your deltas should be in single digits at this point. We did indeed turn up. I think this rally peaks in the 400-410 range and then we head back down
Posted on 1/11/23 at 5:19 pm to LSUtoOmaha
quote:
Both your deltas should be in single digits at this point.
Yep. 6.6 on the short call side, 3.3 on the put side and 2.2 for the put spread.
It would take a massive rally or Powell coming out holding a spear and a sword, yelling “kill them all!!!” to mess these trades up.
Posted on 1/13/23 at 8:55 pm to LSUtoOmaha
With the downward move in volatility this week, I let everything I had on run to expiration and expire worthless today. While nice to score max profit on all my trades, seeing the VIX barely above 18 gives me pause. With IV and premiums now relatively low on the S&P, I’m beginning to look at a light debit (long) put spread, if not a short call spread on SPX. The RSI isn’t crazy overbought, but I’d be cautious going with a bullish short put as part of a syn. strangle… plus to get meaningful credit, I’d have to enter with an uncomfortably high delta.
So will probably look at some near the money long put spreads on Tuesday to scalp, plus see what earnings plays come up for next week.
So will probably look at some near the money long put spreads on Tuesday to scalp, plus see what earnings plays come up for next week.
Posted on 1/14/23 at 7:37 am to Jag_Warrior
quote:
seeing the VIX barely above 18 gives me pause
I think we're heading into a long period (weeks to months) of muted volatility, which supports my best case view that the major indexes will be in a sideways range this year.
Theta finna eat. Go on and take those higher deltas.
Posted on 1/14/23 at 9:17 pm to JimMorrison
0 DTE IFs have been printing boys.
I’ll share my stats shortly.
ICs, not so much. Daily ranges have been very volatile.
I’ll share my stats shortly.
ICs, not so much. Daily ranges have been very volatile.
Posted on 1/15/23 at 9:56 pm to Brobocop
quote:
ICs, not so much
I agree. The 0DTE ICs would have been tricky. I’ve been trading weekly short ICs with good success for several months now. But watching the wild daily price swings on SPX derivatives would have to give a day trader chest pains. Except for when I was out of town, I’ve felt pretty comfortable selling the weekly expiration low delta ICs on SPX with some size. I haven’t had to roll anything since I think before Thanksgiving.
Posted on 1/15/23 at 10:34 pm to JimMorrison
quote:
Theta finna eat. Go on and take those higher deltas.
Low vol + high delta make Jag nervous that him
Posted on 1/17/23 at 11:28 am to Jag_Warrior
The S&P 500 and other indices are at an inflection point. Right up against the most obvious trendline ever, with key moving averages converging. The longer term trend is still down, but we have breadth, breakaway momentum, etc. A binary move seems to be upcoming, but not necessarily a spike in volatility as measured by the VIX (priced off spy option string over next month). I'd probably wait until after the move and then place the strangle trade again.
Posted on 1/18/23 at 3:09 pm to LSUtoOmaha
Rejected off the 200 dma in the SPY, but still right there at the inflection point. Curious to see if we consolidate before another move higher.
Posted on 1/18/23 at 6:33 pm to LSUtoOmaha
It only took a couple of sessions for the VIX to break back above 20. And while the S&P held up relatively well yesterday, its decline was more in line with the DJIA today - or pretty much between the Dow and Nasdaq.
So with these short synthetic strangles being a bit capital intensive and still the overhang of a relatively low VIX (and premiums), I’ll mainly stick with some earnings plays until the next Fed announcement. Having a look at NFLX for tomorrow. Probably do a 1/20 jade lizard on that one (naked short put and a short call vertical spread).
So with these short synthetic strangles being a bit capital intensive and still the overhang of a relatively low VIX (and premiums), I’ll mainly stick with some earnings plays until the next Fed announcement. Having a look at NFLX for tomorrow. Probably do a 1/20 jade lizard on that one (naked short put and a short call vertical spread).
Posted on 1/18/23 at 7:18 pm to Jag_Warrior
Cool. What deltas do you target for the short legs on earnings plays. 20?
Posted on 1/18/23 at 8:17 pm to LSUtoOmaha
With NFLX, I’ll target about 10 on either side and try to stay delta neutral.
NFLX has had this nasty habit of blowing through the expected move on occasion (on the downside), and I’d rather not end up holding a bunch of stock. The expected move for this week’s expiration is +/-32.57. The IV is over 63%, so it’s worth a play.
NFLX has had this nasty habit of blowing through the expected move on occasion (on the downside), and I’d rather not end up holding a bunch of stock. The expected move for this week’s expiration is +/-32.57. The IV is over 63%, so it’s worth a play.
Posted on 1/19/23 at 10:15 am to Jag_Warrior
I wanted to report performance on the 0 DTE IF, which is a strategy I've pivoted to for 2023 in the lower IV environment.
14 Total Trades, 12 total winners.
Gross P/L: $1225.00
Net P/L: $1082.62
Total ROC: $21.65%
My two losers were due to entering the trade late. This is very important because options premium decays most in the first half hour of the day. If you don't enter in the first 10 minutes, you've lost opportunity.
Yesterday was a loser. I should have entered at open, but decided not to, and it would have been a winner.
I don't trade it every day. It's based on how the market opens. I typically avoid entering after major gaps up or down.
It's been a good strategy so far!
14 Total Trades, 12 total winners.
Gross P/L: $1225.00
Net P/L: $1082.62
Total ROC: $21.65%
My two losers were due to entering the trade late. This is very important because options premium decays most in the first half hour of the day. If you don't enter in the first 10 minutes, you've lost opportunity.
Yesterday was a loser. I should have entered at open, but decided not to, and it would have been a winner.
I don't trade it every day. It's based on how the market opens. I typically avoid entering after major gaps up or down.
It's been a good strategy so far!
Posted on 1/19/23 at 11:18 pm to Brobocop
quote:
14 Total Trades, 12 total winners.
Total ROC: $21.65%
Excellent win/loss percentage, as well as ROC!
You’ve definitely got a firm grip on this strategy.
ETA: I also like that you have a root cause understanding of the losers!
This post was edited on 1/19/23 at 11:20 pm
Posted on 1/20/23 at 2:39 pm to Jag_Warrior
Tack on 2 more winners today!
Opened a $3910 IF right at open.
Then another around $3900 after the gap fill.
Both executed flawlessly.
Total P/L now at $1382.
Opened a $3910 IF right at open.
Then another around $3900 after the gap fill.
Both executed flawlessly.
Total P/L now at $1382.
Posted on 1/20/23 at 3:34 pm to Brobocop
Nice. Very nice.
My NFLX jade lizards printed. The CRWD covered calls expired worthless. Had some CRWD naked calls on for next week at 111, now they’re covered. And an assortment of smaller trades also expired worthless. Great week. No losers or tested trades so far this month.
I’m short term bearish (the retraction in the VIX suggests trader complacency, if not “hopium”), so I put on an SPX 1/31 syn. strangle at 3795P/4095C, as well as a 1/26 4055/4150 SCV (hanging around a 12 delta on that one, single digits on the strangle with a bearish skew).
Hope everyone else had a great trading or investing week.
My NFLX jade lizards printed. The CRWD covered calls expired worthless. Had some CRWD naked calls on for next week at 111, now they’re covered. And an assortment of smaller trades also expired worthless. Great week. No losers or tested trades so far this month.
I’m short term bearish (the retraction in the VIX suggests trader complacency, if not “hopium”), so I put on an SPX 1/31 syn. strangle at 3795P/4095C, as well as a 1/26 4055/4150 SCV (hanging around a 12 delta on that one, single digits on the strangle with a bearish skew).
Hope everyone else had a great trading or investing week.
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