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Wrote a 3350 for 1/29 for 1.55.
@ap42 Wrote a 3450 for 1/29 for 2.05 (3 delta) and think IV was 50! I'm probably greedy, but 300 points would be two days 50% worse than today!
Well I dodge the bullet today on my 3730 put, which feels great. These days are the ones that really help this strategy.
My strikes are between 3245 and 3345. IV was between 78 and 86 according to my calculations. Very exciting day today. Today is exactly the kind of the day for this strategy: the index falls but not so much that it's below strikes.
@navypack I'm using a ~65k portfolio to write options on an index at $370k. I need to play it safe.
The market also further slid after hours from -2.5 on SPX to -3.2%. I like sleeping well.
@ap42 wow, serious leverage, so can see need to be safe. I don't feel so bad going up to second option contact to get up near 4x leverage, but likely wait until max leverage is 3.8x.
@ap42 on a day like today when puts are worthless, do you roll to a higher strike for a 1 DTE option or just ride with what you sold Wednesday.
Well, I was early. I sold 3 of the 1/29 3505s for 1.20. They are marking about 8.05 right now and went from 2 or 3 deltas to 9. A little nerve wracking, but I've still got 245 pts cushion and 2 days of trading.
@e-trader I wouldn’t read much into prices at or after market close especially on a day with big moves.
@nobatmanjokes Thanks. Often that is the case in index products (especially my RUT flies). The /ES confirms that is about the current/correct price. All we need is a pause, bounce, or tempered grind down.
Big VIX spike today and will be interesting to see what people get today. Sold 300 pts OOM earlier and a little underwater now.
Seems my ones for today (3615 and 3450) are mostly safe, but 3 hours is a long time.
Wrote 3420 for 2/1 for 1.05 (~1'ish delta).
3475 for 1.2 about 45 min from close. Still a decent trade but bought the small “spike” today.