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2022 Q1 Trades

Page 3 / 7

sl0244
Posts: 8
(@sl0244)
Active Member
Joined: 1 year ago

this is a very good month for me. very good premium due to high vix. it's the major strategy for me to make some money when my long-term investment is down big. Wed sold  3950/3925/3900/3850 4 contracts. total premium $8.65. luckily no loss so far in Jan. 

ERN, thank you very much for the sharing. 

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setspreads
Posts: 16
(@setspreads)
Active Member
Joined: 8 months ago

Has anyone else seen this announcement from the CBOE? Wondering if this would potentially change anyone's plans

https://ir.cboe.com/news-and-events/2022/02-03-2022/cboe-plans-list-spx-tuesday-thursday-expiring-weeklys-options

Cboe to List SPX Tuesday, Thursday-Expiring Weeklys Options

Cboe Global Markets, Inc. plans to list S&P 500 Index Weeklys (SPXW) options with Tuesday and Thursday expirations in the second or third quarter of 2022, subject to regulatory review.

 

With these planned new listings, Cboe will offer SPX Weeklys options with expirations on every trading day of the week, providing traders with additional tools to help manage their short-term U.S. equity market exposure and execute trading strategies with even greater frequency, precision, and flexibility.

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7 Replies
NavyPack
(@navypack)
Joined: 2 years ago

Estimable Member
Posts: 185

@setspreads brief discussion in comments on the Option Series part 8, but think more discussion is probably valuable.

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earlyretirementnow.com
(@earlyretirementnowcom)
Joined: 6 years ago

Member
Posts: 297

@setspreads This is great news. I will be trading the options every day then, with the expiration on the next day. It goes back to the benefit of the "Central Limit Theorem", see the discussion in Part 3 ( https://earlyretirementnow.com/2019/03/27/passive-income-through-option-writing-part-3/), section 5 "Trading three times a week (and sometimes four!)"

True, you face a higher risk of a whipsaw: the market goes down on Thursday but then recovers again on Friday before the close and a Thursday option would have locked in the loss. But the other risk of two large drops in a row is much more dangerous. 

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schmeljones
(@schmeljones)
Joined: 1 year ago

Active Member
Posts: 17

@earlyretirementnowcom 100% agree - hopefully this actually comes to fruition. Selling Thursday expirations rather than Friday would have allowed me to sidestep or at least mitigate my biggest loss this past month on 1/21, not to mention being able to sell new contracts earlier when VIX spikes...

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TwentySomething
(@twentysomething)
Joined: 2 years ago

Active Member
Posts: 16

@schmeljones Next-day expirations would help today too! Looks like some of my puts are going ITM right now.

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schmeljones
(@schmeljones)
Joined: 1 year ago

Active Member
Posts: 17

@twentysomething LOL I guess I jinxed us with that post and had a 20 point ITM finish to show for it.

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setspreads
(@setspreads)
Joined: 8 months ago

Active Member
Posts: 16

@earlyretirementnowcom @navypack thanks for your thoughts here. I will check out those comments on the post and your suggestions @earlyretirementnowcom

"But even the most badly-behaved statistical distribution becomes more and more Gaussian-Normal (that nice, symmetric bell-shaped distribution) if you average over a sufficiently large number." 👍 

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schmeljones
(@schmeljones)
Joined: 1 year ago

Active Member
Posts: 17
mpaziran
Posts: 17
(@mpaziran)
Active Member
Joined: 1 year ago

Whew...dodged a bullet today. Had the 4395 strike. Who needs coffee when you can sell puts. Russia really needs to chill out!

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3 Replies
NavyPack
(@navypack)
Joined: 2 years ago

Estimable Member
Posts: 185

@mpaziran I was at 4405, so sweating for a bit today.

Sold Monday 4160 for $1.95 at the close, so feel pretty good on that one. 

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mpaziran
(@mpaziran)
Joined: 1 year ago

Active Member
Posts: 17
earlyretirementnow.com
(@earlyretirementnowcom)
Joined: 6 years ago

Member
Posts: 297

@mpaziran I had a close call, too. 4395 strike. Plus a 4400 I sold the same day. Whew!

Wednesday 2/16 strikes at 3925-4000. Should be safe!

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NavyPack
Posts: 185
(@navypack)
Estimable Member
Joined: 2 years ago

Sold on Friday early around 1000 Eastern Time the 4060 Put for $1.50 when SPX was about 4390.

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setspreads
Posts: 16
(@setspreads)
Active Member
Joined: 8 months ago

Does anyone have experience automating their trades using this provider for Interactive Brokers? Considering trying it out.

https://capitalise.ai/explore-ib/

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2 Replies
figuy1
(@figuy1)
Joined: 1 year ago

Eminent Member
Posts: 48

@setspreads It looks like it's mainly geared towards individual stocks/etfs triggering on technical indicators rather than selling options targeting a specific delta/premium which this strategy is based on

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setspreads
(@setspreads)
Joined: 8 months ago

Active Member
Posts: 16

@figuy1 Thanks for taking a look!

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