This week was extraordinarily volatile, but still the .10 delta SPX trades (even one that I made at .12 delta) were barely tested. Not only that:
AMZN was down $100 on Wednesday after a Trump tweet claiming they didn't pay enough taxes. This whacked the 1 standard deviation condor I had on, but had I used the .10 delta even this would have expired worthless!
TSLA had similar troubles and results: a loss at 1 standard deviation but a win if put on at the .10 delta.
So here's my trading plan:
- continue using the 1 standard deviation condor with NDX a.m. settlement when it's available once per month; I put this on around 9:45 or 10am Pacific
- otherwise put on an SPX trade .10 delta condor every Monday, Wednesday and Friday, 4-5 DTE
- Supplement with high-IV underlyings like AMZN and TSLA and CMG ... all at .10 delta short strikes
That should do it ... more results next week ...
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