But I still manage to have extremely poor timing today. As soon as I entered a credit call spread on NDX with tomorrow’s expiration, it shot up and continued a tear for the remainder of the day.
At market close, my short position is at 0.25 delta & a mere 80 points from my strike. For reference, NDX rose 110 points (0.9% change) and had high-low range of 214 points today.
I wasn’t happy about having to hold the position overnight as a gap up would almost guarantee a huge loss tomorrow. Assuming no gap up and another 214 swing up – I’m looking at a max $10,000 loss. Of course, I’ll try to close the position before expiration and mitigate the losses as much as possible, and dare I even hope to bank just a portion of that $600 max profit.
Pray with me to the Stock Market Gods, even though we know that the market just does whatever it wants and timing it is impossible.
Unless you’re a hedge fund market maker with near unlimited funds – in which case, you just manipulate the market to however you see fit.