Trade Discussion

IncomeLab Forum Forums Income Lab Trade Discussion

This topic contains 164 replies, has 18 voices, and was last updated by  Igor 4 years, 1 month ago.

Viewing 15 posts - 46 through 60 (of 165 total)
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  • #5187

    Igor
    Keymaster

    I have the limit order in place not sure why I am not getting filled

    #5189

    Igor
    Keymaster

    Igor,
    Are all the orders you post GTCs or good for day only? Thanks

    #5191

    Igor
    Keymaster

    Suresh, GTC orders are bad for ICs. If the market moves and credit shifts to one of the sides of an IC then you’re taking all the risk on both sides but getting paid only for one, if that makes sense. I use DAY orders, keep an eye on each spread and if the market moves to where most of the credit is on one side of IC, then I’ll look to move strikes to keep credit more or less balanced.

    #5192

    Igor
    Keymaster

    Nishant,

    Be patient, getting filled into lunch time can be tough. Let your order hang out and check to see where spreads are in an hour or two. If you see 1.30 on either side of the IC then it’s time to look to change strikes. Here’s what current spreads showing:

    #5194

    Igor
    Keymaster

    Thanks Igor I just got filled.

    #5195

    Igor
    Keymaster

    Calls just went from 1.10 to 1.40 with comments from the FED chairlady. Put are still showing .85c

    #5199

    Igor
    Keymaster

    I just got filled @ 1.80 on May 1860/1870/2145/2155 initiated after yellen so moved the strikes a bit — still took till now to get filled.

    May2 Put side also closed @0.30

    #5200

    Igor
    Keymaster

    Hi Igor,

    I am still in this trade Sell -1 Iron Condor SPX May 16 2140/2150 1830/1820 CALL PUT for 1.80 I didnt see your previous message where I should have taken it off.

    I am thinking of buying the bull put spread for 0.40, than do you recommend waiting for a pullback to buy another bull put spread?

    #5203

    Igor
    Keymaster

    Nishant,

    Problem with closing 1830/1820 put spread is that you’ll have more short delta. You can look at rolling up that put to NEW -10 delta for .50c credit otherwise just let this trade work and keep an eye on short strike’s delta on the upside.

    #5204

    Igor
    Keymaster

    Thanks Igor, I thought its better to buy the put spread once it reaches 0.35 to 0.40 after reading your previous posts.

    #5205

    Igor
    Keymaster

    Right, closing at .30-.40 is a good place to exit, BUT you also want to consider that remaining 2140/2150 will be accumulating more short delta if SPX continues higher. With that in mind you can consider:
    A) Closing 1830/1820 and waiting for a pullback to sell a new spread or
    B) Closing 1830/1820 and selling a new spread for about a .90c credit or
    C) Do nothing and try to exit the whole thing at 40-50% of original credit.

    #5206

    Igor
    Keymaster

    That helps Thanks Igor.

    #5216

    Igor
    Keymaster

    Hi!

    Why are we waiting to sell the other Bull put?

    I have an IC that i get in by myself a few weeks ago,last week i buy the bull put and roll it to delta 12 and i just buy the new bull put again.. I still have -10 calls on 2100/2125 april 29 that i sold in 1.89. And i cant find a way to adjust it that i seems ok.

    I dont know what to do… I already cash 2 bull puts but im still down. Any ideas?

    #5219

    Igor
    Keymaster

    Selling put spreads aggressively CAN backfire especially when getting closer to the expiration. If you want to walk through this trade and see possible outcomes shoot me an email at igor@iwomail.com

    #5222

    Igor
    Keymaster

    I’ll explain this a little further.

    As an options chain approaches expiration, the amount of premium available in those options continues to decline.

    That’s theta.

    So if you sell put spreads with say 2 weeks to expiration, to get any reasonable amount of premium out of them, you’ll need to sell closer to the underlying price of the market.

    And it would take only a little downside action to get screwed.

    Let’s take an extreme scenario. Say you have 1 day left to expiration and you want to sell some put spreads.

    Well, the only amount of premium available would be on options that are very, very close to the underlying price.

    It wouldn’t make sense to enter those, the risk doesn’t justify the reward.

    At some point in the duration of an options cycle, that risk/reward starts to not make sense. I’d say under 2 weeks puts you in risky territory.

Viewing 15 posts - 46 through 60 (of 165 total)

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