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Today I bought the Nov 1240/1250 spread for a debit of .50 Risking .50 to make 10.00 Not bad if we get a good rally this cycle. If we get any strong moves down I will sell a WOTM put spread to recover my .50 Also I'll make whatever profitable adjustments that present themselves along the way.

Coach, With all the cautions being expressed about entering call credit spreads this cycle, would it make sense to expand this discussion to debit spreads on the SPX? I realize this is a credit spread thread, but flexibility should be part of the learning curve here, and making this switch at...

Here are my results for the October period, my first using this strategy. Call Side: 9/6 Sold 10 Oct 1290/1280 call spreads for 1.15 (1150.00) 9/22 BTC Oct 1280 Call for .40 (-400.00) 9/29 Sold Oct 1250/1260 Call Spread for .80 (800.00) The 1250 spread and 1290 calls expired...

Hey Guys, there is a lot of truth on both sides of the argument. But isn't it also true that the appropriateness of a strategy depends on the market environment. Credit spreads have been profitable for the past six months or so, and the results show that it has been a good strategy during this...

Gatorplease, Thanks for sharing how you handled last week. I am quite new to this but I pay attention to support/resistance. I saw support at 1210, at 1200 and again about 1190. the index just kind of dove through all those levels. Where did you get your conviction that 1170 was a support...

Oh Boy! I have been following this thread from the beginning. The past few days of this discussion have been most educational! As we know anyone can make money when the market is cooperating with their positions. And these SPX spreads seem like they have the potential to open that profit...

Thanks for the informative reply coach. Your points are well taken. I occasionally make trips overseas for business and pleasure, and at such times the market can be dificult to track. I was looking for an auto-pilot for those periods, but thanks for pointing out the pitfalls of a stop loss...

Coach, I am looking into using contingent stop loss orders to exit these spread positions to cover my but during periods of time that I am unable to closely monitor the SPX. I also wonder if they would be effective as a risk managment tool for traders that have a hard time pulling the plug on...

About 10 days ago I put on a SPX OCT 1190/1180 spread for 1.00 At the time the index was moving up nicely and a short strike 50 pts OTM seemed reasonable. However the index has moved down 30 pts in only 3 days and I am starting to get nervous. I can see support at about 1200 but its not major...

Thanks for making that point Dr. Vodka. The guys at tos also stress looking at the sums of your greeks of all open positions when considering a hedge. However I am not sure exactly how this is processed. Would you care to give a for instance which numbers are most important to you and action you...

d & d - old man, old investor, young at options.

Coach, I have a 1280/1290 entered last week for a 1.15 credit. With the market down I want to grab profits and am looking at current prices and considering several scenarios: 1. Leg out at current prices for a debit of .35 2 Buy back the spread. Midpoint is .20 so I would have to add .05...

Tom Sosnoff is big on the IWM. But that index can easily move 5% in a month, and there is little premium beyond a few % otm. So IC's only work in the flattest markets. You have to do bc or bp spreads and be right on market direction to score. The strikes are 1.00 so margin is a lot less, but...

I know they have seats in the SPX pit. As a customer I will just demand great fills. :p

I recently attended several live trading sessions with the guys at thinkorswim. Theirs is a great trading platform that automatically fills in limits at the midpoint. Doing many trades on indices, (not the SPX though) they were only taking trades that filled at the midpoint. If I remember...

3:45 CST its now .80 I would not expect to get that - maybe have to shave it to .60/.65 still alot more than .05 on the SPY. How do you shave that?

Sorry but I don't see that. In the last hour the midpoint of the SPX 1280/1290 was .65 while the midpoint of the SPY 128/129 was .05 Am I missing something?

We are trying to trade the SPX because of the premiums available deep OTM. What would be a more appropriate instrument to trade credit spreads that would give these OTM premiums?

Coach, So you are saying that what the chart is saying is more important than an expectation that past patterns may repeat? You have indicated that you will continue this method of selling premium on SPX as long as it is working for you. Since it is a strategy that seems to work well in up...

Phil, Thanks for letting me look over your shoulder. Your generosity should help you sell loads of books. I am wondering how you plan to handle the next few months. The markets traditionally make their best gains of the year from Sept to Dec. and we would expect a bias toward put spreads...