I’m looking for a way to adjust the weekly options on the Spx cause I don’t want to lose 1000$ for a trade that gives 200$ credit but I can’t see any way to adjust / stop loss / any ideas out there?
I'm trying to provide constructive criticism when I say you, you consistently do not provide enough information for anyone to provide a targeted helpful response. The result will be a group of responses trying to guess at what you are looking for and others that will tell you just not to trade SPX.
I find that the Spx ndx move every day /2 days -/+ .50% so I want to see a butterfly on that move and make a few bucks but I don’t want to lose 1000$ if it doesn’t move at all or returns to that point so I want to know what I can do in order to lose less money
You have to base your trade-long or short your butterfly-on your assumptions of what you expect the index to do or not do. If you have no process to predict or have an expectation of future movement, your trades are too random and you are just betting the MM and others that price these are wrong. I would work on that process to have a higher confidence on your trades, then you will learn to take the good with the bad, as they over all provide an acceptable return.
Friday with an SPX close of about, 2834, if you sold the 2825/2835/2845 fly for friday- last friday, which closed at about $1.05 and you are risking $8.95, you have to expect the index will close outside that range a much higher number of times than inside. Enough to be wrong and still make money. I would never hedge a spread like this, just have a process to exit.
So that’s exactly what I’m looking for a exit idea if I do a stop loss of what ever number u said the spreads are to wide and it will trigger it any case and maybe hedging is against the vix ? Help me out here robbert