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Agree with your comment on the american style. A negative on SPY relative to SPX is as you say there are no .5s (i.e. 135.5, etc.), but I generally trade 10 pointers on the SPX so it's not really a big issue. Also, what I really care about is the net credit I receive. Sure the commission...

I want to compare a current potential SPY trade with an SPX trade: 1) 10 June SPX 1350/1360 bear call. Mid is at $0.70. Net credit (at midpoint) = $675 (includes $25 commission) 2) 100 June SPY 135/136 bear call. Mid is at $0.10 Net credit (at midpoint) = $750 (includes $250...

It did, thanks. Which broker are you using? Also, I'm wondering about this past week. Did you have a position? The strong two days down, I would think probably was a problem. It would be interesting to see how a position fared this past week.

Welcome. If you want to, it would be interesting to have you post your trades so that we can follow along. When the SPX weeklies first came out, there was interest within the forum. As usual we expected Coach to put up the money (or margin) to try them out and he did. But interest has...

OK, Mo. How about some details for a change :) Maybe one, just one of your trades for us to consider. Thanks.

Rally: Most of what you state is the current way I'm trading FOTM. 1) Only bear call spreads. Although those premiums on the bull puts sure look good. 2) I start putting positions on 6 to 7 weeks before expiration. Otherwise, it's tough to get $0.5 to $0.6 per 10 pt. bear call vertical...

Staying on the subject of black swan, I would love to know what some of the professionals traded during and right after 9/11. How did they try to protect their own or their client's investments? Riskarb, Maverick, and other pros, a response would certainly be educational for all of us on...

Andy, thanks for the good wishes. I'm not adverse to doing bull puts, if I can find an adequate hedge for the black swan. We've talked about VIX options and shorting futures. I don't trade futures and learning how during a black swan event will only compound the losses. Am I being...

Andy: I'm sure your right! But, here's the thing. If there is a black swan event, I may not have seen it coming and then I'm left with my bull puts, which will probably be ITM. Further the SPX may be well below the long put with minimal chance to have my bull put get back to OTM. This...

Murray: What you are doing seems interesting and I believe you noted that you have pretty much eliminated the black swan event (dear to my heart!). While credit spreads are my bread and butter, I'm looking to diversify and may want to start placing paper trades on the strategy you're...

My strategy is gravitating towards credit call spreads only (obviate black swan risk). Given that scenario, it will increase my comfort level to hedge my risk since I will no longer have bull puts to help bring in income when my bear calls are potentially threatened. Under that assumption, it...

Well, even I have to say: Wow! EDIT: Just a clarification for the new people. I'm not the biggest JA fan because I like more voluptuous women. It's not because I'm, well you know.....

Pi: Your strategy seems to have gotten less risky in that you are now proactively putting on hedges, whereas, I believe you didn't use hedges before. I like the way you're setting yourself up, ahead of time, for future bear call spreads by proactively buying SPY hedges when they are cheap...

Actually, I had an order in for June bull put 1225/1215, but cancelled it. Two sharp down days and it seemed like I was trying to "catch a falling knife". Better to wait.

Coach: Do you have any June positions?

You guys are killing me. I'm gone for a couple of days and there's 20 pages to read. I'll tell you though, the way the unreasonable client beat me up today, I'm seriously considering quitting my day job and just trading. Managing people is such a drag. Anyway, I posted on April...

That seems like a great credit for a 5 pt. vertical that is almost 35 points OTM. Keep that up and you may actually convert a few of us :)

Well, most of us who are regular posters (except Rally and maybe Cache) follow Coach's strategy which is to adjust or get out before your short strike is breached. Also, while the probability is lower that the long on a 30 point is breached when compared to a 5 point, do you really want to take...

Mo: I agree with you in theory. But as a practical matter given the b/a spreads on the SPX, it might be easier to just adjust a single option (the short stike), and I might be able to get the fill executed closer to the midpoint. Also, a small advantage is that the commissions on such an...

Mo: I would really be interested in knowing what positions you put on, regardless of whether or not they are credit spreads (which I believe you don't trade as a rule). Do you post your trades on any public threads and if so would you mind sharing where? Thanks.