Superfly!

Everything breaks even at 6990, I wait.

entered today when SPX was around 6880...just a 50c net debit, let's see if SPX can run past 6930 at the close...

never dull, I took em off for $2.50 - we'll see how they cash settle

this is why I almost never cash settle spreads....(after expiry I mean)

hi-lo for Friday.

closed all for a small net gain, the bwf actually looking like it could run to high profit, but I'd need to wait. Lack of patience on a Friday with other shit to do...

Hi-Lo for Wed, because btfd never dies. Typical mo for these now is to try to buy the vert on a dip run, with some time left near the end of the day @1dte, then buy the bwf for decent credit b4 the close. Works ok about 1/2 the time I guess, compared to just buying them both at the same time, which I will also do if I have waited too long. I did a little better on another one and got in the vert for $3.75.

Also I have been trading these a bit wider in the fly @ 2dte, which cost a little more but pay better.

In other words, I'm trying to leg into the combo. It can work out if you predict the underlying move well - I'm often betting on some kind of rally in the last hour.

Another fun fun way to leg into flys is using a long, then short vertical. A fly is simply a combination of a long and a short vertical. For instance, I could start with the 30pt call vert for tomorrow - 6830/6870 - entered at the close @ 1dte or at the open @ 0dte. try to enter on a dip, at support, so you catch an up move. Then sell the 6970/6910 call vertical for a credit that mitigates the debit from the front vert. You can work into a symmetrical fly this way, at decent credit outright. Or, if you're wrong...ouch.

so, you can enter for a decent credit @ zero risk and have a chance for very large profit. Enter as 1 long vert + 1 short vert, close as 1 fly....


in a trending market, it's arguably easy to pull this off. Give yourself more time and buy the bull vert a week or more out. As wide as you can afford. The verticals are better put further otm, just for affordability. Still need to work of PA and try to catch a dip to support for the initial long vert.

If your broker gives you grief for closing as a fly, you can just close out in reverse - close the short vert first, then the long vert.

If you try to catch a bottom & leg into a fly like this - what if your entry is wrong, price keeps descending? Close it for a small loss and try again. I'm thinking this mo is a good fit for the opening breakout that spx often gives us.

$1.25 net for the other one. I paid too much for the vertical spreads - I like to keep the net debit for the combo closer to $1 max.

If you get an early runner, that'll get the best net.

hi-lo for Friday, 70c net debit more like it

always hope for the best....

out for a $40 net, not gonna sit on these on a Friday typically, stocks looking stuck anyway

bot this NDX call fly today with NDX down around 25500...if I can get out for a double today, I will.

whack spreads on NDX

one of the bull flys I had on NDX for the week has a chance of running to high return. I won't be able to wait for it, have to go out well b4 the close. NDX not looking to bullish today, anyway. Looking for a $20 out but likely have to take less.

For Monday. If USD firming improves we might have a 2-way market.

I've been experimenting legging into flys. Results have been ok, but mostly I have been bailing on the fly formation because the initial long vertical has been giving back decent return. Anyway, the algorithm goes something like this:

1) At the end of 1dte, buy a long SPX call vert. You can use discretion to do this with either calls or puts (or both), depending on how you imagine pa going the next day. The vert should be at least 15pts wide; the wider the better and the closer to itm, the better, also, but you'll pay for that. I'm looking at 40 delta or further otm. 20 wide 40 delta from Fri close is 6955/6975 for $8, which is as much as I want to risk.

2) At the 0dte open, see what SPX has done. If it has moved up over 10 pts, there will be some profit, but you'll need a 20 pt move to make enough to grab it off. Whatever the move, look at the other piece of the symmetrical fly, which would be short 6975/6995 per the example above. Note the cost of the fly at Fri close - 6955/6975/6995 - is $2.95. If your 0dte short 6975/6995 worth like 1/2 of that or more, consider selling that vert to form the fly. If you can form the fly for $1.00 net, for instance...