Symbols traded: Short Iron Fly on SPY, XLE (1DTE)

With the major economic reports of the week past, and with the markets having returned to lower implied volalaties, I’ve resumed my very short-term trades with a short Iron Fly position on SPY, entered one day before expiratIon. Unlike earlier 1DTE trades, I intend to hold on to the position with the goal of exiting for a 25% profit. In the past I’ve exited at the market open. With this trade I’ll exit at 25% profit or at 1 p.m. New York time, whichever comes first.

I also entered a 1DTE short Iron Fly position on XLE under the same rules. Thursday’s are one day before expiration of many options, which have weeklies and their smallest time frame. That makes XLE available for a 1DTE trade.

I exited SPY entirely on expiration day, selling off legs of the Iron Fly individually, producing a $219 profit for each contract.

SPY short Iron Fly

LOT:	9	ENTRY DATE:	2/29/2024
		MANAGEMENT:	3/1/2024	EXPIRATION:	3/1/2024
		DAYS HELD:	1

Entry and Exit

METRIC	ENTRY	EXIT	CHANGE	CHANGE %	ANNUALIZED CHANGE %
Options premium	$ 2.01	$ 0.18	$ 0.18	9.0%	3251%
Stock price	$ 507.70	$ 511.00	$ 3.30	0.6%	237%
Impllied Volatility Rate	10.9	10.5	-0.4
Days to expiration	1	0

The structure of the position

STRUCTURE	STRIKE	ODDS EXPIRE OTM	DELTA	IN PRICE	OUT PRICE	NET PRICE
Calls
Long	511.00	82.0%	18	$ (0.34)	$ 1.30	$ 0.96
Break-even	510.01	67.0%	33
Short	508.00	52.0%	48	$ 1.33	$ (3.11)	$ (1.78)
Puts
Short	508.00	52.0%	48	$ 1.54	$ (0.03)	$ 1.51
Break-even	507.01	64.5%	35.5
Long	505.00	77.0%	23	$ (0.52)	$ 0.01	$ (0.51)
						======
				`	NET TOTAL:	$ 0.18

Risk and Reward

Per contract:
Reward	201.00
Risk	99.00
R/R Ratio (n:1)	0.5

---

XLE short Iron Fly

LOT:	1	ENTRY DATE:	2/29/2024
		MANAGEMENT:	3/1/2024	EXPIRATION:	3/1/2024
		DAYS HELD:	1

Entry and Exit

METRIC	ENTRY	EXIT	CHANGE	CHANGE %	ANNUALIZED CHANGE %
Options premium	$ 0.60	$ 0.04	$ 0.04	6.7%	2420%
Stock price	$ 86.09	$ 87.40	$ 1.31	1.5%	555%
Impllied Volatility Rate	5.3	7.0	1.7
Days to expiration	1	0

The structure of the position

STRUCTURE	STRIKE	ODDS EXPIRE OTM	DELTA	IN PRICE	OUT PRICE	NET PRICE
Calls
Long	87.00	83.0%	18	$ (0.10)	$ 0.86	$ 0.76
Break-even	86.60	64.5%	35.5
Short	86.00	46.0%	53	$ 0.43	$ (1.42)	$ (0.99)
Puts
Short	86.00	46.0%	54	$ 0.33	$ –	$ 0.33
Break-even	85.60	66.5%	33.5
Long	85.00	87.0%	13	$ (0.06)	$ –	$ (0.06)
						======
				`	NET TOTAL:	$ 0.04

Risk and Reward

Per contract:
Reward	60.00
Risk	40.00
R/R Ratio (n:1)	0.7

By Tim Bovee, Portland, Oregon, February 29, 2024

Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

License

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Based on a work at www.timbovee.com.