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Yes, I too am eagerly looking forward to learning about this strategy. The black swan event is the one thing that makes me nervous about trading credit spreads even FOTM spreads. Most other events, I feel I can risk manage fairly well. Look forward to this.

Coach: I posted earlier that I placed my first hedge in April. I purchased a 133 SPY Call to hedge my April SPX bear calls. So, I'm thinking about exit strategies for this SPY hedge. 1) Let it expire, which is the strategy I planned to use when the hedge trade was first openend. 2)...

Coach: We're within your 45 day window for placing May trades. Are you considering any trades at this time and if so what?

Maybe, we'll have to see. I think I have a reasonable cushion and because it's a bear call I can see trouble coming and adjust or get out of the way (unlike the 'black swan' event). I've been successful these past three months (although April is still not over) with bear calls; hopefully, my...

Yeah, now that Coach has gone prop, I have this feeling he won't be as a good a contrarian indicator. There goes our secret weapon :)

Actually, I got filled at $0.65 not $0.60.

Starting to put on positions for May: Got filled today on the following: MAY SPX 1370/1385 bear call at $0.60

Regarding the discussion of 5 point spreads versus 10 or 15 on the SPX, what has the experience been on actually getting filled. My experience is that I've had a lot harder time trying to fill a 5 point spread than a 10 or 15 spread (at linearly increasing credits; i.e. $0.25 for 5 pt spread...

Coach: Looks like we're back up near resistance for the SPX. I'm wondering if this might not be a bad time to place a May bear call spread. Advantages are additional time premium and being able to go even more FOTM, UNDER THE ASSUMPTION, that we remain in a trading range. However, if this...

So you wait for the market to hit your short strikes before you adjust, is that correct? What kind of adjustments do you consider?

I assume you meant APR 1245/1250 bull put spread? I was thinking about my comment that your closer OTM spreads will have more movement, but I forgot that you typically do 5 point spreads. So, I'm not sure that they would move as much as I thought. This could be tested with a pricing model...

Can I ask which strikes you selected?

Ryan: Are you talking about the paper trade you placed or a real trade?

Yes, I agree with you that your strategy requires closer attention to entry points. I look forward to reading your trading posts. For my benefit and others who are interested, I'd appreciate it if you wouldn't mind adding a brief blurb about the entry point, i.e. top of trading range...

Rally: How can you be so sure that there will be a "better price" soon enough to provide reasonable premium for April on the FOTM spreads that we trade? I follow a group of day traders, and I can tell you these guys are more often than not puzzled by how the market moves. They use...

I decided to place one more bull put trade for April. Got filled on the following: SPX APR 1240/1225 bull put for $0.50. This was a tough one to get filled and I must have replaced the order at least ten times. The mid was jumping around like crazy and ToS informed that the pit was...

SPX quote is not updating in ToS, but futures are. It's stuck at -0.95 when CNBC says it is down 4.12. Pisani is saying that there is often a turnaround in the market after an hour because initial reactions to FOMC are wrong. We'll see.

Got filled on the following today: SPX APR 1240/1225 bull put for $0.50 The premium was less than I would have liked, but adequate for a 60 point distance. Also, the XSP mid was of no help in setting the initial credit. Not only because there is no 122.5 but also because the mid for...

Welcome to the thread, Rally. Your strategy is an interesting one and one that I would be interested in following. For me personally, your short strikes are too close to the actual price to place such trades. Further, it seems like your method will result in a higher incidence of adjustment...

This is an interesting strategy for setting credits. I've been having trouble getting filled on SPX APR bull puts and, as you say, the mid has just been jumping around. I'm gonna start using this idea to see if it helps. When I post a filled order, I'll try to remember to include where the...