SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
I am trying to fill my 1290/1295. I haven't got my price yet. Maybe tomorrow morning I will make sure I get filled. I am not sure SPX is ready to break the 4 years high yet. I am looking for a pull back. My short strikes for december are:
1150-1160 for PUT and 1290 for Call.
Cheers
1150-1160 for PUT and 1290 for Call.
Cheers
Quote from optioncoach:
I told you when we were discussing 1240 I did not feel comfortable with it given the potential for a nice surge in NOV. I am glad I avoided calls for NOV. Even though I feel good technically with my 1275/1280 call spread for DEC I am still nervous about what post-Thanksgiving rally could do if we stay high like this. Good news is that my 127 SPY hedge is up about $2,000 lol.
I only used $150K for margin for DEC positions and I think that once we hit the first week of DEC I will use remaining portions for JAN positions and try and end the year nice.
The SPX and ES ar eboth above resistance lines so that price target I mentioned of 1260 is starting to look viable for December. Keep your DEC call spreads at 1275 or higher. The more cushion the better.
I just opened a DEC 1275/1280 short today, so make room in the boat! Got a .65 credit towards the end of the day. I know that is kinda close, but the risk/reward is still right. Assuming the extra edge of selling the call spread on a runup is with me, I am well positioned for the down days that we are hopefully due for, and if we get a decent downdraft I am ready to add the puts.
I am still undecided on how strong the market is right now.
I am still undecided on how strong the market is right now.
Technically I still feel safe at 1275 but with surges you never know lol. I am glad I bought my 127 SPYs to cushion the blow but I still see us not getting over 1260 in the next two weeks so theta....you better be on time!
35 more points in the SPX is still a bit if a leap without a strong catalyst. Next week will be lighter volume so my bigger concern right now is the Friday and Monday after Thanksgiving depending on where we are. My gut is telling me we might have to adjust on 1275 strike but it could just be end of the year, do not want any losses at all feelings talking 
It is the margin I don't like really on naked options on the indexes so that is why I do the credit spreads.
Now that margin is getting released, does anyone have any suggestions on spreads? I'm looking to close out an 1120/1135 bull put spread and roll up, but there's not credit on anything I'm willing to roll up to! I'm hesitant to go over 1180, but up to there not much credit. Just curious!