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DDOG at 103.76
The chart looks bearish and I think we’re going to test 85 level.
This is a put debit spread, risking the debit paid. A move above 116 will invalidate this set up.
Chart:
Risk Profile:
Order Ticket:
RUT trading at 1845. I’m rolling this butterfly down for .05db
Orders:
UNH at 523
The chart looks a bit bearish and I’m looking for a move towards 510.
This is a Put Debit spread, risking only what I pay for it.
Chart:
Risk Profile:
Order Ticket:
DDOG at 94.08
This trade is showing +40% in 2 days. This is a closing order.
Multiple contracts can be scaled out, leaving part of the trade on to see if we move lower over the next few weeks.
Risk Profile:
Order Ticket:
BA 152.08
The chart is suggesting we might see more downside. My target is around 145.
I’m going to set up a butterfly, centered at 145 (my target). The wings are 3×5 so were not taking any risk on the downside.
Chart:
Risk Profile:
Order Ticket:
RUT at 1800. I’m rolling down this fly to stay delta neutral. The goal is to scale back up if we move up from here.
Orders:
RUT at 1800. I’m rolling down this fly to stay delta neutral. The goal is to scale back up if we move up from here.
Orders:
RUT at 1795 and it breached the low strike again. I’m rolling down to keep delta neutral for a .09db
Order Tickets:
SPX at 3939
Risk Profile:
Order Ticket:
Some of you requested me to share my 0DTE trades. This is a very simple “mechanical” trade but there’s a few things to be a aware of.
Mechanics: At the open I sell a 20pt wide put and call credit spread with the short at 5 delta. I look for about .65cr on both sides.
Stops: I set a stop limit at 3x the credit received on the whole iron condor. For example, if I got 1.30cr for the the iron condor I set my stop (triggered on the bid) at 3.90 and the stop limit at about .40 higher (4.30db in this case). The other part of the order setup as a OCO order is to close each spread separately for .10db. This allows me to take advantage of the market swings and be out of the trade as quickly as possible.
Stop order screenshot
If I get stopped out and internals support it (ticks, breadth, order flow, tempo) I let the long leg run until I see the move has stopped or slowed down and then close it for hopefully enough credit to offset the loss. On a strong trending day this long leg could actually make you more money than the credit received.
Things to be aware of:
1-ALWAYS respect your stops. This will ensure the probabilities work out.
2-On big news events (FOMC, etc) your stops might get triggered and could get filled for a higher amount or not get filled at all. I usually avoid being on the trade. Same goes for MOC at 3:50pm EST. I want to be out of the trade no matter what before 3:30pm EST.
3-This is a trade that you want to be watching, not a set it and forget it. Stops can and will get run on a fast moving news event.
4-VIX is above 20 nowadays so keep in mind lower volatility will make this trade work differently so don’t take these rules as the only way to do this trade.-
This topic was modified 3 years, 7 months ago by
Gabriel S.
Thanks for sharing, Gabe. Looks like your Stop order screenshot shows only the puts. I assume you have the same order for the calls, right? Same stop of 3.90, and stop limit +.40 higher on the bid, correct?
Correct!
RUT keeps crushing the expected moves and today triggered more adjustments. I’m rolling the fly up and adding a 2nd one.
New Risk Profile
TTWO at 129.10
With 4 days until expiration, this trade is a pure short gamma gamble. For anyone that doenst know what that means yet, it’s another reason to take profits now and not wait much longer.
Risk Profile:
Order Ticket:
BA at 144.79
This trade is showing +50% and it’s time to trim and trail (or close out completely)
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Order Ticket:
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This topic was modified 3 years, 7 months ago by
