March 15, 2016 at 2:41 pm #5007
Thanks IgorMarch 16, 2016 at 1:48 pm #5024
Here’s an idea for SPX APR IC :
APR 1820/1830 bull put showing a mid price of 0.375
If I can close this spread for .30c or less and potentially sell something else that would be a good trade. If SPX rips higher after the FED, I have a call hedge to help me manage with the upside risk.March 16, 2016 at 2:35 pm #5028
APR4 SPX IC
I just bought the APR5 delta 20 SPY call to hedge my position.
In addition I have been unable to get a fill on selling another put side in last 3 days. (was trying to get 0.8 for delta 11)March 17, 2016 at 6:39 pm #5045
SPX MAY2 Iron Condor question:
Have you got filled @1.80?March 18, 2016 at 9:49 am #5050
Mid price for this IC is showing 2.20 right now and to enter this trade right now is not a good idea because most of the credit has shifted on the call side.
I wouldn’t enter this trade with the original strikes at this time. If I was looking to enter an IC in MAY2 cycle I’d look to sell 2140/2150 Bear Calls and 1870/1860 Bull Puts.March 18, 2016 at 1:25 pm #5060March 18, 2016 at 4:05 pm #5061
im in APR 4 — didn’t have any puts as havnt been able to get filled. Just filled on the 1930/1920 @ 0.8 have my call SPY and will be rolling around 2065
It looks like a LP now. Is the idea here with the BPS to cut some delta or get some credit ?March 18, 2016 at 5:16 pm #5063
The idea to roll up the put spread is to both, cut a little delta and increase theta. Old put spread wasnt going to 0 even if SPX rallied another 30pts, that means it wasnt providing any kind of hedge against the call spread that would be gaining value under the same scenario. Next adjustment would be to roll up the calls and remove the hedge, let’s see how it trades next week.March 21, 2016 at 1:28 pm #5081
I usually put GTC buy orders for $.40 on each of the call and put spreads immediately after selling an IC. Last week, I got filled on some of my APR and APR4 put spreads for $.40. If the market continues to go up I would loose those extra profit on these put spreads, though these spreads probably won’t go too far below $.40 unless I hold them till close to expiry. But if the market reverts, I will be in a better position with only the call spreads on. I can either close those call spreads and be out of the IC; or sell some new put spreads for higher credit. Any thoughts on this approach?March 21, 2016 at 1:39 pm #5082
You are 100% correct about those put spreads not going much lower below .40c
The reason why I think it makes sense to take those off is because if the underlying moves higher and the bear calls gain 1.00 while bull puts lose .10c, these puts arent doing anything to help this position. I like the idea of rolling up the puts to 10-13 delta for additional credit if I think that the pull back, if it comes, will not be a massive move lower. Taking off bull puts and only holding on to bear calls is best if the underlying reverts, but the timing has to be perfect. There’s no right or wrong here, it’s about NET position delta. If you’re comfortable holding on to -X delta for a few days while waiting for reversion? If the answer is no, then selling another put a bit higher is the way to manage this position. This is my thinking process..March 21, 2016 at 2:02 pm #5083
It’s a temptation (for me at least) to take off the bull puts and only hold on to the call spreads so you can be out of the trade faster if there is a big enough pull back. So sometimes I don’t even wait till the put spreads get to $.40 and buy them back at $.45/$.50. But that’s, like you said, trying to timing the market. Your approach of rolling up the put spreads for additional credit certainly makes sense. Thanks IgorMarch 21, 2016 at 3:09 pm #5084
Do you have instructions or a post on entering a position? For someone looking at May, is this still the position to enter?
“If I was looking to enter an IC in MAY2 cycle I’d look to sell 2140/2150 Bear Calls and 1870/1860 Bull Puts.”
MarcMarch 21, 2016 at 3:16 pm #5085
I was referring to the most recent IC that I put on and that was in MAY2 weekly cycle. MAY monthly options are about 59 days out and that is a good place to start looking for a new trade. I’d look at 1860/1850 bull put and 2155/2165 bear call for a total credit of 1.80 or better.March 21, 2016 at 4:55 pm #5086
1900/1890 Bull Put currently showing mid price of .375 to close. If this spread can be closed for .30-.35c that’s a good exit. On the call side, 2110 call’s delta currently around 11 and mid price for 2110/2120 around 1.00
This trade has been open for 20 days and SPX moved about 1.10 sTD. 1920/1930 Bull Put spread showing mid price of .70c and 1930 put’s delta currently around -11. On the call side, 2090 call has a delta of 27 and the adjustment on the upside will be to remove the hedge (APR5 2110 call) and roll up 2110/2120 Bear Call spread
1800/1790 Bull Put spread showing mid price of .40c and 1800 put’s delta is currently around -6. On the call side, 2130/2140 Bear Call is under pressure, 2130 call’s delta is around 15. Potential adjustment on the upside would be to re-balance NET position’s delta using OTM options and potentially roll up the Bull Put spread.March 23, 2016 at 10:48 am #5105
Can I still put on this trade?
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