I remember when Porsche only had a few marquee cars...then all of a sudden they became like Chevy or something with a dozen different models...nice cars, but still, it's a way to dillute the brand...Ferrari introduced the California a few years back (nice looking car), but true enthusiasts seemed disappointed with the direction things were headed...
Gotta love ZERO RISK in the SP500 = $$$
- Thread starter makloda
- Start date
I remember when Porsche only had a few marquee cars...then all of a sudden they became like Chevy or something with a dozen different models...nice cars, but still, it's a way to dillute the brand...Ferrari introduced the California a few years back (nice looking car), but true enthusiasts seemed disappointed with the direction things were headed...
Do you ever try to leg into those spreads? Either sell the short call first, wait for a pullback and then "anchor" that strike or vice-versa?
No, typically if I have a reason to think I can call the short term move about to happen, I will just trade it outright at a larger size instead. I've done what you mentioned before in a paper account with actually pretty decent success, but I took on huge amounts of risk and held naked short positions overnight, which I would not be comfortable with whatsoever in my account. I made something stupid like 18% in a month primarily through credit spreads and a few naked short positions, but the amount of risk being held was pretty significant.
yea thats what I am waiting on, a blow off run to 2060 just as Oct ends, pulling in long the last of the holdouts
I see...I was thinking just in terms of perhaps a daytrade legging in...I know that when I do a spread all at once, the execution prices are sometimes lacking and even a 5 pt move in spx/es can make that spread more attractive.
That may happen...nothing can be ruled out with this kind of market...btw, have you been watching RUT/IWM the past 2 days? it's like a giant "W"...
Yeah, I dealt with this the other day when selling some, the next day on a small move the spread was worth significantly more.
"Yeah, I dealt with this the other day when selling some, the next day on a small move the spread was worth significantly more."
What underlying would you choose regarding selling the options right now, since the IV is pretty low generally
The ones I sold last week were on the SPY. I'm trying to find some edge in individual stocks if I can figure out good times to sell, working on some form of a system right now. Rally's posts in the SPX credit spread trader are what I am trying to follow kind of. Something similar at least.
Good question...I'm not doing any credit spreads or anything like that...I generally like to go long puts/calls and if I feel inclined then I will spread them off...and sometimes later on I'll just turn them into butterflies...but lately I mostly just kinda scalp otm puts/calls in SPY/IWM/QQQ...
If/when I'm in credit spreads, it screws up my "bias" and I wind up doing dumb **** trying to hedge them...but I'm just saying if I were inclined, I'd just leg them off of a good "outright" options trade that I wanted to spread.