spx matrix 7 - vectorvest · bull put spread bear call spread ... • look for 4:1 or better...

SPX Index Trading Matrix - Options Paycheck - Style

Monday - Do the DEW 9:30am EST

Down

• Sell SPX PUT with delta < -.20 • Buy lower strike insurance PUT • Use 4 strike (20 pt) separation • Expiry = 25 days • Note starting short delta • Look for 10:1 or better credit/risk ratio

• Sell SPX CALL with delta < .20 • Buy higher strike insurance CALL • Use 4 strike (20 pt) separation • Expiry = 25 days • Note starting short delta • Look for 10:1 or better credit/risk ratio

Friday - whenever ADX < 20 ATR < 50% yearly range

Profit >= 50% or Short strike hit

Short option delta change >.20

Profit >= 50% or Short strike hit

Short option delta change >.20

Close bear CALL. Open new one delta < .20

Up

Bull PUT Spread Bear CALL Spread• Sell OTM CALL (delta <= .16) • Buy higher strike (4strike/20pt) insurance CALL

• Expiry 21 days • Note initial short option delta • Look for 4:1 or better credit/risk ratio

• Sell OTM PUT (delta <= -.16) closely match CALL delta • Buy lower strike (4strike/20pt) insurance PUT

Iron Condor

Add delta < .20 bear CALL spread (BC1) Add delta < -.20 bull PUT spread (BP1) Market down. Bear CALL net delta change > .20

Close bull PUT. Open new one delta < -.20

Market up. Bull PUT net delta change > .20

EXIT EXIT EXIT EXIT EXIT EXIT EXIT EXIT EXIT EXIT EXIT EXIT EXIT

Profit >= 25%

Short Option Hit Short Option HitRoll BC1 to new (BC2) delta .20 CALL spread

Conclude all trade adjustments by end of week prior to expiration week. (ie. no adjustments on expiration week)

Avoid trades that approach &/or culminate around a known expected major market-moving news event.

Roll BP1 to new (BP2) delta -.20 PUT spread