SPX Credit Spread Trader

Quote from Sailing:

Anyone following the Kramer effect?

Some studies show he has more daily influence than any major broker or combination of brokers out there....

M~
More...

Yes Murray,

I followed for several months, subscribed to his action alerts plus as well. Made some, lost some.

Here is the website that collects all of his recommendations:
http://madmoneyrecap.com/

Forum for discussion here:
http://www.cramersmadmoney.com/

There are a lot of theory on how does he find the stock picks. Best of the breed (best times as well :) hottest stocks in the hotest sector with great momentum. he does move the market, expecially after hrs. Based on my observation, his picks moves up/down next morning and whatever has to happen to the stock happens in initial 30mins or so.

Ideal way to cash his picks, buy after a while but need to hold for a little longer terms as generally he picks good one.

At the same time, there has been several blows as well i.e. Baush & Lomb, UNH, etc. HAL he has been shouting that it's going to moon ($100, post split $50)

Net, after experimenting for a while, I stopped it as it was not a consisten way to make money (for me).

Happy to answer further questions based on my exp,

Happy trading,
Manoj
 
Quote from rsflint:

Ryan, yah the 1350/1360 is looking ugly. I ran the #s today and figured min $4 to close it which will be PAINFUL. I know you are in a diag, but what are your thoughts for a new position to open?? For example I was thinking about opening at 1360/1370 after to offset the debit..but with OC not doing his hedge and Cramer-speak, who knows what will happen!! I've checked the technicals and all say bullish except stochastics and fibonacci which are very bearish. Thanks for the post and response in advance.
More...

With time winding down on Oct options and the market going up on just about any news I'm not sure there are many good call spreads left out there right now. You may want to take your loss now and sit on the sidelines until you are ready for Nov positions or roll into Nov now. I keep waiting for Coach to put on his hedge and help us all out but it looks like he is being stubborn this month :).

When did you open your positions? SPX was at 1316 at Sep expiration which isn't that far from you 1350 short. This makes me think you must have put on the Oct position pretty early.
 
Quote from tplast:

I think ryank was just commenting on the current value of rsflint's positions, but didn't mention his own.
More...

I was commenting on his positions, sorry for the confusion. I will update my diagonal positions later this morning when I have a little more time.
 
Quote from optioncoach:

There was an inverse head and shoulders pattern on the ES 5min chart which broke out to the upside around 2:00 PM. 1346/1347 is the extent of the measured move and I would like to see us pull back off of it into the close and into 4:15 PM. If not then we will certainly test the ES high of 1353.

Not going to adjust my 1340EW/1360ES diagonal yet as the 1340 calls have about 3 points of time value premium..
More...


Coach,

we are in the same boat now. I have 1340EW/1360ES as well. I`ve made some on ES futures, but the final depends on this spread.

I know this sounds silly but is always nice to know that you are not alone in hot environment.
 
With durable goods orders we have an initial pullback. As long as we stay near 1345 we will still be able to close out the spread for a profit as the time value prmeium erodes off.

Quote from ChrisM:

Coach,

we are in the same boat now. I have 1340EW/1360ES as well. I`ve made some on ES futures, but the final depends on this spread.

I know this sounds silly but is always nice to know that you are not alone in hot environment.
More...
 
Quote from tyrant:

The call diagonals increased in value from about $0.80 to $3.85? Hows that different from credit spreads in terms of safety? I am also a bit confused from prior posts that in diagonals, you want your short strike to be breached???(obviously not in this case) Or does that only refer to when the front month is about to expire, and you want the price to go near your short strikes to gain maximum on your long options? any explanation is much appreciated.
More...

Those were vertical credit spreads I believe, not diagonals.

If you're thinking about risk, LOL, also be aware of the different risk profiles for CTM credit spreads vs. these OTM credit spreads. Once your OTM spread (done for a small credit vs. large theoretical risk) starts getting too close for comfort, your goose is a bit cooked.

There was a good discussion here on this subject: http://www.elitetrader.com/vb/showthread.php?s=&threadid=63020&perpage=6&pagenumber=174 Start with the newbie question 9/15 at 6 pm or so.

And do read the discussion on this thread starting about 9/4 on credit spreads vs. diagonal spreads.

Best of luck,
Beachie
 
Quote from optioncoach:

With durable goods orders we have an initial pullback. As long as we stay near 1345 we will still be able to close out the spread for a profit as the time value prmeium erodes off.
More...

Yeah,

bad news is that big chunk of this profit we may get on Friday, as long as we have stomachs for this :)
 
Quick update using mids before the market opens today (please stay down today :)):

Oct 1285p/Nov 1265p +.30
Oct 1325p/Nov 1300p +1.3 (half size position)
Oct 1375c/Nov 1400c -.25

Late yesterday I added a "tent pole" of Oct 1365/Dec 1400 (half size) for a credit.

With slippage I'm probably b/e to slightly positive right now. If the market stays down today and volatility goes up a bit I should be in the black. As it is right now things look good heading into expiration. I know, famous last words.

Last night I started looking at buying back the Oct 1285p and selling the Oct 1295p. Will need to look at this again today with the pullback and see if I still want to do this.
 
You must log in or register to reply here.
Back
Top