This morning's gap triggered stops on both of our open positions.
Worries from Japan, and a Fed "hangover", caused the SPX to gap down 20 points this morning at the open. This triggered the stop orders for both the SPX May 5 weekly Put Credit Spread and Iron Condor. As the time of this post the market has recovered, but we stayed with our plan and risk management to exit the positions as per the guidelines. That can be the downside of having exit/stop limit orders in at all times. However, there is never any certainty that a recovery may take place, and the stop limit orders remove emotions that may arise when trying to make that determination while the market may be moving against the position.
I plan to enter an SPX May 5 Put Credit Spread on Friday, selling a .15 delta, 10 wide. The minimum credit I will accept in order to enter the trade is .80. If there is a lower delta with a credit of at least .80, I will sell lower, in order to be a bit further away from the price. An update will be posted over the weekend with entry details.
For anyone not familiar with the guidelines on the SPX weekly credit spread, the article I posted on May 12 gives the outline of the trade. The article can be found on this link: Link to Articles
Trade carefully and trade your plan,