Now that we've answered that, we can all go about preparing for a wonderful weekend. No, more explanation is warranted. Many experienced option traders have probably already discovered the wisdom of entering trades, even similar trades, on different days.
Consider the case of February butterflies. Many traders enter butterfly trades about 25-35 days before expiration. That meant that a lot of traders were entering butterflies the trading week of January 18-January 22.
Annotated Daily Chart of the OEX:
I'm experimenting with the type of butterfly that I'd like to be a staple of my options repertoire and the way I want to adjust them. Iron butterflies--a scrunched-together iron condor formed by selling puts and calls at the same strike and buying hedging wings, usually equal distances from the short strikes--have been the type of butterfly that I generally trade. I typically adjust by selling another iron butterfly at the expiration breakeven. If the prices keep going in the same direction, I'll take off one of the butterflies, and so it goes. I'm not an expert. I do at least have a rudimentary understanding of how to adjust the position to keep the Greeks in line so that the possibility of profit is maintained as long as possible while the trade keeps going.
Butterflies are trades that are hurt by rising volatility and that benefit from prices staying in a predefined range. The butterfly can be moved to take care of the price risk, but it's hard to overcome that difficulty when a sharply rising volatility is making the trade less profitable, too. I was one of those who entered the trade on January 19, and the number of adjustments required eventually overwhelmed the trade, costing too much in commissions to make it viable. If I just ignored my maximum loss and let prices run, the trade would have proven profitable after all, but I had no intentions of doing that. I know in the long run that my accounts will benefit when I honor my trading plans.
If I'd placed the trade one day later, fewer adjustments would have been needed. Volatility would already have begun climbing and prices had already fallen a bit, and that provided just enough leeway that I probably could have made the trade work if I had been nimble enough with my adjustments, as many who entered on January 20 were able to do.
As this example illustrates, it's sometimes best to split one's planned trade entries up among several different days. With the VIX at a low in the middle of January, we could have surmised that volatilities were due for a pop, so it's easy to say in retrospect that this had just been a bad time to enter butterflies or iron condors, too. However, traders find that even when they believe conditions to be ideal for a certain type of trade, the markets conditions they thought would develop don't develop after all or develop later than anticipated. Spreading out the time trades are entered, even similar trades, spreads out the risk.
I generally enter 75-90 iron condor contracts (75 bear call spread and 75 bull put spreads) each month. I used to enter all on the same day, but I've been trying to split them up. When markets dove throughout February, that meant that not all the bull put portions were threatened at the same time, which helped me manage the trades. This doesn't always happen so nicely: the drive up the last ten days has brought all my trades to adjustments points at once several times in the last week, but that's an unusual occurrence.
Many seasoned traders do try to space out their trades a bit, in the spirit of another type of diversification. Diversification can be into different vehicle, different strategies, and also different times.