Feb 01 – Update

The STTs for Jun 29 are now approaching break even. Not bad when the market is in the exact same spot as Monday.

Another week or two and the profit tent should build up comfortably.

6 thoughts on “Feb 01 – Update”

  1. Patrick, wondering how your structures are doing in this new volatility environment. I know you’re in some June STTs and I’m guessing that the market is probably getting close to the front wing and that you’ve either done something to protect the structure….or your companion trade hedge as you expected?

  2. I would be interested in how someone trading the size you are in these structures adjusted. I have smaller STT trades on and they took a pretty big hit, it was actually my shorter term hedges I had put on that kicked in and limited my losses. Bid ask spreads were so wide, I had to adjust by buying in singles. I couldn’t get verticals filled let alone broken wing condor orders.

    1. They did take a big hit. IB implemented a 30x rule that made it impossible to roll hedges. Then the way they calculate margin had it so that I couldn’t adequately remove hedges in anyway and these hedges are time sensitive. Left me in a very precarious state.

  3. Hi Patrick. I too have signed up with Ron … due to information on his youtube videos …but most of all, because of your blog. Hope to keep seeing your posts. Going thru the course and will sign up for mastermind group soon. Been trading options for quite a few years, but not adjusting IC’s or Fly’s efficiently made me look for something else. Think I found it. Thanks!

    1. Initially was and could have remained catastrophic @ IB but I was able to nurse everything back to an acceptable state as of just right now šŸ™‚

      I know TOS traders didn’t have as much of a challenge if properly hedged. I know a person that had similar trades in both TOS and IB at the same time. The one was break-even the other was down significantly after the dust cleared. IT was mostly with being able to get off hedges and the various calculations that made rolling and putting on new contracts impossible (Again, just at IB). IB might be a risky choice for these types of things if you’re leveraged at any normal amount.

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