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Yeah, I just meant he could take heat with 3k trading a couple shares of SPY, you can't take much heat in ES with 3k, you're right to the tick or you're done. Perfect entries. Probably best to build up 25k first.

Realistically, should be trading a couple of shares of SPY at a time, but PDT was meant to 'protect' you from stocks...and instead throw you to the sharks in ES if you want to learn live and with minimum bankroll.

Sept spread is b/e the day before expiration. Good simulation of how it handles a quick move up. Sustainable, but needs those neutral days and/or proactive directional bet hedges. October spread is b/e also, but I'm scratching that one. Going to sim one with a farther OTM call to help...

'ES-NQ' spread is just short ES without a stop. Look at Feb-April timeframe, no pullback until Greek riots/flash crash. Need a macro event.

Didn't get to update yesterday. Made one adjustment for the October spread: +2 114 calls @ 1.52. Both the Sept and Oct spread sit around b/e right now. Getting out of the Sept spread would still be a mission though, at least the 104/106 calls, in a timely fashion. Oct spread...

Spread has actually made it back to b/e, a couple of days of neutrality is all it needed. That said, you throw in the slippage to get out of this 8 leg monster and I'd be out -$400 or so. No quick fill on the 104/106 calls either, the 104's traded 75 so far today, the 106's traded 10,000+ but...

Strong bounce off of the 8:30 #'s, so: -4 113 puts @ 2.60. 109 SPY is the Maginot line for a downside adjustment, market seems neutral to up right now. unrealized p/l= -$200

Did some calculations, selling back everything on bid, buying back everything on ask, simultaneously, would lose +/-$400 as opposed to the unrealized p/l pricing at midpoint. That would be minimum 16% of profit. Mainly due to the b/a spread on the 104 and 106 calls. The same strike puts have...

Price has come in a little and the spread isn't looking too bad for now, -260 deltas here at 110.10. Delt neutral around 109 SPY. Moderate downside would be good for the spread, though, again I have those short puts so anything swift and the spread would get "blowed out", to quote Emmitt...

NFP pushed price near the upper b/e, so, -2 111 puts @1.87. Broadens out upper b/e some more but now the downside risk just looks ridiculous, black swan would destroy me. Delta neutral at 109, have to aggressively buy puts once crossed to hedge the short puts. unrealized p/l: -$600

Alright the spread got ugly pretty quick here, it was what I was hoping for initially but now some other problems are present. 1. Execution. Executing the exit of these legs would require 'work'. Not just market orders on ES, hah. I know IB has some option execution order types that can...

SPY flirting with 109 SPY, another adjustment: -2 110 puts @ 2.72. This widens out the upper breakeven a little, giving more time for some neutrality/reversion to play out. On the upside hedging again approaching 109.50 SPY. On the downside, delta neutral is now around 108 SPY/1074...

Moved higher overnight to around that 1064 range, was sitting on a decent +200 unrealized after the open, then ISM came out. Bought upside calls after the spike, juiced up premie of course, +4 108 calls @1.83 +2 108 calls @ 2.00 +1 108 call @ 2.10 sitting on -$400 unrealized right...

We did get down to around 1037.50 around Europe opening, but another bounce off that level, I guess S&R traders are liking the range. The spread is liking the rangebound activity also but I suppose it can't last forever. Market is fluttering around my 106 short strike, -33 deltas at 105.53...

At market close the spread is delta neutral around 105.08, position is pretty much breakeven/slightly positive. Was looking for the worst but ended up with the best,, at least for RTH. Hedging on the downside if we get to 1037/104.30 SPY, upside is clear to 1064/107. Now, the downside...

Last night we moved through 1070 on the BoJ announcement/Nikkei strength, I was looking at the ES chain in case I had to make an overnight adjustment, but we retreated. Around 1:45 right now the market has drifted back to my short strike 106, sitting on roughly -$80 p/l right now. I did kind...

Reviewing the spread after market, Monday I would factor in 1080/108.50 on SPY as an upside target, p/l would be roughly around -$500 there without any adjustments, and without factoring some more vola coming out of the calls. No econ #'s out Monday morning. Asia/Europe may bring market...

Two adjustments. Short -2 103 calls @ 3.64 as we headed south off of Bernanke @ 10am. Premature decision by me, planned not to hedge downside until we broke 1037, but, I did anyhow. Bought +3 105 calls @ 2.68 as we rebounded. Unrealized p/l right now sits around -$350, and my risk...

Okay basically its like a short straddle but its skewed a little bit so it has extreme upside risk and a fixed loss on a bearish move. To me, I can handle upside risk, or so I think anyway, by buying calls to hedge. First way to find out is to simulate it. Market conditions for rally mode are...

Keeping a journal of a simulated option spread in SPY. This is a good time to put it on, market 'oversold', because it has the most risk to the upside, so I can practice hedging upside risk. Position is: +50 104 calls @ 3.23 / -67 106 calls @ 2.04. Will get to the description in a minute.