SPX Credit Spread Trader

[El OchoCinco]

Current Positions:

- 400 SPX DEC 1215/1220 Put Spreads @ $0.30


- 120 SPX JAN 1165/1175 Put SPreads @ $0.45


Will let the DEC puts expire worthless and add some more put spreads the next week if the credit is still there. Despite my adjustments in my original DEC 1275/1280 puts which I rolled higher once and then closed, I will still have a net profit on my DEC positions, thanks in no small part to those partial hedges which I rolled up into free trades. Real interesting way to end the year lol.

Quote from rdemyan:

Coach:

Would you repeat again, please, what your current positions are?

 

[momoneythansens]

Andy,

Btw, nice trade if you did it. XEO has gone nowhere since last exp. Perfect month for sideways strategies.

$9 initial vs. current $5.60

Quote from andysmith:

...In case you're interested, here's the trade logic I used (learned from an experienced trader). Right now, XEO=575. Put on a DEC 560/575/590 iron fly...

 

[piccon]

If it can close below 1260 today, it wouldn't be bad at all. Anyway Thursday even if it's lower than my short 1280, I am out.

 

[Synaptic]

Anyone have thoughts on where the market is headed today ? Big setup for the FMOC meeting tommorrow and subsequent rocket ride ?

 

[piccon]

I love when Bush gives speech. Every time He gives speech, the market goes down. Go back to all his speeches and you will see.

I hope He will talk Wednesday and Thursday

Quote from Synaptic:

Anyone have thoughts on where the market is headed today ? Big setup for the FMOC meeting tommorrow and subsequent rocket ride ?

 

[El OchoCinco]

Market is probably a little skittish ahead of Fed meeting. Not because of the rate hike since .25 hike is expected but because of language and forward looking statements. I think the market is going to be more or less flat and tomorrow you might get a surge on the news that will evaporate.

Quote from Synaptic:

Anyone have thoughts on where the market is headed today ? Big setup for the FMOC meeting tommorrow and subsequent rocket ride ?

 

[Synaptic]

My feeling is that even though the market has factored in the change in the Fed's language concerning future interest hikes, it will still rally on the actual statement (tommorrow). Why we are dumping today, I just don't know .... still looking to fill my JAN put spreads so the timing may not be bad.

Quote from optioncoach:

Market is probably a little skittish ahead of Fed meeting. Not because of the rate hike since .25 hike is expected but because of language and forward looking statements. I think the market is going to be more or less flat and tomorrow you might get a surge on the news that will evaporate.

 

[burrben]

Go Theta, Go Go Go.....

Quote from piccon:

If it can close below 1260 today, it wouldn't be bad at all. Anyway Thursday even if it's lower than my short 1280, I am out.

 

[optionwriter]

Coach - What criteria do you use whether to hold to settlement and let expire worthless or close position in last couple days?
I've taken a couple years off of credit spread trading and am easing back in.
I just reviewed the settlement procedures off the CBOE site, and was reminded settlement is based on opening price on Friday, not Thursday's close.
I'm currently holding 100 contracts on the Dec 1290/1305 call spread that I opened for a $.80 credit a few weeks ago.
I'm feeling pretty secure with this position, but say it gaps the next couple days and closes at 1285 on Thursday. Still 5 pts out of money, but risk of a > 5pt gap on Friday open would hurt.

Just curious as to you or others threshold for pain approaching expiration - thanks.

 

[Synaptic]

Interesting quote from CNN/Money ....

"In particular, market participants will probably continue to focus on whether or not the Fed continues to pledge to raise rates at a "measured pace," analysts say. "

"If that word is not removed, the market could be disappointed,"