March 29, 2016 at 12:12 pm #5187
I have the limit order in place not sure why I am not getting filledMarch 29, 2016 at 12:14 pm #5189
Are all the orders you post GTCs or good for day only? ThanksMarch 29, 2016 at 12:17 pm #5191
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.March 29, 2016 at 12:21 pm #5192
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:March 29, 2016 at 12:22 pm #5194
Thanks Igor I just got filled.March 29, 2016 at 12:26 pm #5195
Calls just went from 1.10 to 1.40 with comments from the FED chairlady. Put are still showing .85cMarch 29, 2016 at 3:41 pm #5199
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 @0.30March 29, 2016 at 4:47 pm #5200
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?March 29, 2016 at 8:04 pm #5203
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.March 29, 2016 at 8:54 pm #5204
Thanks Igor, I thought its better to buy the put spread once it reaches 0.35 to 0.40 after reading your previous posts.March 29, 2016 at 9:08 pm #5205
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.March 29, 2016 at 9:09 pm #5206
That helps Thanks Igor.March 30, 2016 at 11:32 am #5216
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?March 30, 2016 at 4:19 pm #5219
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 email@example.comMarch 30, 2016 at 8:25 pm #5222
I’ll explain this a little further.
As an options chain approaches expiration, the amount of premium available in those options continues to decline.
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.
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