SPX Credit Spread Trader

Optioncoach has a good chance to escape without any damage from this situation (about 50% with this ES-level) but the stress remains until the end. "No guts, no glory" lol
 
Quote from riskarb:

There were a lot of MM and buy-sides [prop-options and hedge funds] trading the SET in NDX very effectively on short gamma a few years ago. Average NDX atm straddles were going into the close of LTD at 15 handles or better. Most NDX SETs were within 4-8 handles of the LTC closing print.

The kind of "pain in the ass" that made millions for Susq amonth others
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Yeah...from the MM Winner side!

From the Retail Loser side - MY side! - it's a pain if you get pinned, or sweat out a close one. :D

Good trading to all.
 
I think you need stones to do this for a living and they have to be big since we put em on the line day in and day out!

I am quite happy with today's close at 1226.50 and I have 4.50 of room on the settlement tomorrow before any loss occurs and I feel confident that 2 things will happen:

1. Profit taking and a flat to down open.
2. Mild opening

I will see tomorrow AM! Hope no upset stomachs were caused lol. I was anxious in the opening but after the market pulled back to 1225 or so early on, I just felt the rally did not have the legs to close above 1230.

Technically no out of the woods so......... :)

Hoepfully this riskier trader was educational for you and profitable for me. I now take you back to your regularly schedule deep OTM call and put spreads.

Phil
 
Quote from skanan:

Sorry, I'm new here. What does "handles" mean ? And how do you determine that "6" ?
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6 points. The SPX settlement value has not deviated > 6 points from the LTD[today's close to tomorrow's opening print/SET] in recent memory
 
In 2001 the SPX settlement deviated from the closing price as much as 40 pts. The mid-90's was pretty wild too.

Admittedly Vol was higher then....but it can get nutty.
 
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