SPX Credit Spread Trader

[momoneythansens]

lol yes, your IC is looking pretty solid right now. Good call.

Quote from DonnaV:

You could be right because late yesterday and early today the IV was around 12 I think...I think my positions are perfect actually I just put them on in the last week and sort of playing it as a weekly...as of today I can close the nov current IC at a profit but I'm waiting to see if there is a big move in either direction before closing out...

 

[ryank]

Quote from DonnaV:

but I'm waiting to see if there is a big move in either direction before closing out...

A move down would be preferable to a move up! As I write this, your short call is 15pts OTM. There is still today's second half to play, along with tomorrow and the wonderful SET Friday morning. IV has increased and delta has dropped for the 1245 calls. The mid of the b/a is .15, are you going to hang on to expiration?

ryan

 

[piccon]

Ryan,

What do you mean by Friday morning SET? I thought that all trading stops after Thursday in the SPX.

Also what is LOL?

I had the guts to do the 1210/1195 Spreads yesterday for 0.50. I did it because I also have the 1225 PUT sitting there as protection. I would be very happy to see it going down today and tomorrow. I would make more in the PUT than losing in the spreads.

Quote from ryank:

A move down would be preferable to a move up! As I write this, your short call is 15pts OTM. There is still today's second half to play, along with tomorrow and the wonderful SET Friday morning. IV has increased and delta has dropped for the 1245 calls. The mid of the b/a is .15, are you going to hang on to expiration?

ryan

 

[ryank]

Quote from piccon:

Ryan,

What do you mean by Friday morning SET? I thought that all trading stops after Thursday in the SPX.

Also what is LOL?

I had the guts to do the 1210/1195 Spreads yesterday for 0.50. I did it because I also have the 1225 PUT sitting there as protection. I would be very happy to see it going down today and tomorrow. I would make more in the PUT than losing in the spreads.

Trading on the SPX does end on Thursday but the final settlement value is determined by the open of each of the 500 stocks on Friday morning. See
www.cboe.com/Products/indexopts/spx_spec.aspx
and
http://www.cboe.com/data/Settlement.aspx

for more information on SPX settlement.

LOL stand for laugh out loud.

Your position you put on yesterday is a bit aggressive but with the protection you have it lessens it a bit.

ryan

 

[piccon]

At what time on Friday the SET data becomes available?

Quote from ryank:

Trading on the SPX does end on Thursday but the final settlement value is determined by the open of each of the 500 stocks on Friday morning. See
www.cboe.com/Products/indexopts/spx_spec.aspx
and
http://www.cboe.com/data/Settlement.aspx

for more information on SPX settlement.

LOL stand for laugh out loud.

Your position you put on yesterday is a bit aggressive but with the protection you have it lessens it a bit.

ryan

 

[El OchoCinco]

usually by 12:30 PM the SET is out but it could be later if any individual stocks had delayed openings or other problems in getting opening prices on all 500 stocks.

Quote from piccon:

At what time on Friday the SET data becomes available?

 

[El OchoCinco]

Kind of quiet... but watching trime decay can be kind of quiet- and profitable.

Reminder of current positions and partial hedges:

-300 SPX DEC 1135/1140 Put Spreads @ $0.30
-300 SPX DEC 1275/1280 Call Spreads @ $0.40

+ 200 SPY DEC 127 Calls @ $0.30

 

[piccon]

Coach,

If the market keep going south and SPX around 1225, I would like to add some 1210/1205 Put Spreads at 0.50 if possible. Would it make sense.

I do have 1225 PUT to protect it anyway.

What do you think?

Quote from optioncoach:

usually by 12:30 PM the SET is out but it could be later if any individual stocks had delayed openings or other problems in getting opening prices on all 500 stocks.

 

[El OchoCinco]

Not sure what month you are talking about. Personally I would rather stay as far out OTM as I can. I may sometimes try and "scalp" the last week with a closer strike position. If you are referring to NOV you only have one more day really and not sure if you can get that premium.

Quote from piccon:

Coach,

If the market keep going south and SPX around 1225, I would like to add some 1210/1205 Put Spreads at 0.50 if possible. Would it make sense.

I do have 1225 PUT to protect it anyway.

What do you think?

 

[piccon]

I am talking about NOV and yesterday I grabed 0.50 for the 1210/1195. I do have the DEC 1225 PUT.

Quote from optioncoach:

Not sure what month you are talking about. Personally I would rather stay as far out OTM as I can. I may sometimes try and "scalp" the last week with a closer strike position. If you are referring to NOV you only have one more day really and not sure if you can get that premium.