A spread before the Fed

I opened a S122/S123 spread today with SPY calls this morning for a net credit of 0.44.   Right now I think there is more downside risk than up, and if I’m wrong and the market rallies my long XIV position will more than make up for my 0.56 worst case loss.   Initially I put in my order as AON (all or none) at a penny below midprice.  It didn’t fill, so as an experiment I removed the AON and resubmitted at the same price—it then filled immediately (this was on Schwab’s SmartStreet Edge package).   Could have been a coincidence, but I wondering if AON adds another layer of processing that hinders execution.

I recently updated to Schwab’s StreetSmart Edge version 1.10.25, and noticed that they added a new feature that shows your option positions on the chart.  My spread shows up as the red and green horizontal lines on the chart marked with “P”s.

SPY 20Sept2001, click to enlarge

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1 thought on “A spread before the Fed”

  1. Hope you made a lot of money from this trade becuse XIV is getting Slaughtered , vix is up 10 % and XIV going down 9, backwardation is back with a vengeance although the curve turned flat on friday.

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