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The trade, constructed from a put and a call credit spread opened a little before 1:30 this afternoon:
Stop losses were set at the short strikes. My technique is to initiate a close at market when a short strike is reached. This may not be the best way to do it, but for now, I’ll be consistent. The short strike levels are selected to have similar deltas and so that the distance between them is double the ATR for the time remaining until market close.
As the last hour of trading approached, SPX was driving dangerously close to our short put strike. I decided to try something new. I opened an order to sell a long ITM call spread that compliments the short put spread on our IC. I’ll describe this more fully this weekend. I expect that we will gain a profit of $215 today on the six verticals we’ve opened. Fees will be less than $10.
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