SPX Credit Spread Trader

Theta and delta starting to take the life out of puts even with the skew. I think 1180 is certainly the highest you want to go since a sucker punch could knock us back to 1200 before you blink. Right now I have 1135/1140 but I got in near the beginning of NOV or so. Under 30 days it gets little harder. Especialy after the surge we had. You might have to wait for some pullback to get anything good in the 1160 area.

On the call side, I would go higher than my 1275 and start with 1290 for best safety.

Quote from gatorplease:

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!
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Hi IV could you please elaborate on what cascading entry of short strangles is...tia donna

Quote from IV_Trader:

you should consider cascading entry of short strangles , try to paper trade it at first.
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I had gotten fairly good credit on 1180/1165 you might try that on the next down day...

Quote from gatorplease:

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!
More...
 
so much for woman's intuition....I just "knew" spx wanted to end between 1230/1235:D ...a tip of the hat to TOS..I finally decided to bail on my 1245 and put in a .50 bid with 10 min to go...of course the bid jumped up to .70/.80 ask 1.00 ...with 2 min left I saw the bid go to .40 and immediately my contract went thru:)

30 days of boredom and 30 minutes of excitment:p
 
Just to follow you, if I am gonna do $150,000 in credit spreads, you are saying I should look into a strangle with the same margin and deep OTM strikes? Somehow I think that the margin could never be fixed really since it could be higher or lower depending on the move in the index. AS the index moves closer to my short strikes, the margin requirement will increase. Not sure if the credit is worth this naked risk.


Quote from IV_Trader:

I understand this , coach , but the first entry should be for a 1/4 only , so its almost the same.
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Quote from optioncoach:

Just to follow you, if I am gonna do $150,000 in credit spreads, you are saying I should look into a strangle with the same margin and deep OTM strikes? Somehow I think that the margin could never be fixed really since it could be higher or lower depending on the move in the index. AS the index moves closer to my short strikes, the margin requirement will increase. Not sure if the credit is worth this naked risk.
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actually you can do it with spreads if it's better for your margins. Looks like now you getting 80 cents for both puts and calls in the 10 point spread(9.2 max loss). One can get 2.20 for 5 point spread ( 2.80 max loss) for the first entry and enter new zone/positions when market go against him .
 
80 cents for which 10 point spread lol. You are losing us ;)


Quote from IV_Trader:

actually you can do it with spreads if it's better for your margins. Looks like now you getting 80 cents for both puts and calls in the 10 point spread(9.2 max loss). One can get 2.20 for 5 point spread ( 2.80 max loss) for the first entry and enter new zone/positions when market go against him .
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Quote from optioncoach:

80 cents for which 10 point spread lol. You are losing us ;)
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if you sell 1210 and buy 1200 (puts) for 40 cents and do similar with calls , aren't you getting 80 cents for max profit of 80 and max loss of 9.20 ? So why LOL ? If you don't want my opinion on your board , fine with me.
Good luck
 
I put LOL in because you did not mention any strikes or month so I could not follow at all what you are saying. The post below is the first time you mentioned any strikes at all. In addition we still do not know what you mean about scaling in strangles so I (and Donna) asked for an example or clarification.

No need to get huffy, no one here said your input was not wanted, we just need some meat on the bones to figure out what you are getting at...

Quote from IV_Trader:

if you sell 1210 and buy 1200 (puts) for 40 cents and do similar with calls , aren't you getting 80 cents for max profit of 80 and max loss of 9.20 ? So why LOL ? If you don't want my opinion on your board , fine with me.
Good luck
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I am watching SPX today. If it closes below yesterday close after the big runup this morning, it would be very bearish. Close above 1245 is critical for any subtantial rally from here. It reached 1249 and now back 1243. We shall see

I am watching and any pullback will be an opportunity to enter my PUT Spread.

Cheers
 
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