SPX Credit Spread Trader

I am looking at the 1195/1205 bull put spread for Jan. With the upward momentum of the market is anybody tempted to go up to 1220 or higher?

ryan
 
Quote from DonnaV:

Well buying straddle doesn't seem to be worth it..even the strangle 70/75 is almost 7 bucks...phil don't bother :(
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Damn. I was hoping for some free money today. Will let you know if I find any. :(
 
I screwed up big time (kind of). This morning I was late to work because of family affairs.

I had 12 1280/1285 at 0.70. When the market was going up, I put a buy/close order for 0.60; at that time the bid/ask was 0.90/1.25. I never expected to come here at 8:30 and find SPX down 3 points. My order has been filled

So for this one:

12 1280/1285 @0.70

Cover for 0.60

Hedge gain: 175$

After commissions I made 282$ on this trade. I was so scared for this one because this morning at home I was down 1200 on it.

I still have 30 1280/1285 in an other account. with SPX down 3.5 points, I wanted to wait for SET to make the final decision.


I got this one @0.55.


Coach what do you think?
 
Wierd market today. A/D is awful, but SPX keeps inching up -- now at 1271.

Either breadth reverses to the upside or we see a couple of sharp drops in the next few hours.... that's my story and I'm stickin with it.
 
Hey all, out of the office for most of the day so will not have much chance to respond.

As for the straddle today, the 1270 and 1275 straddles are price around $8 and that was about the SET I was thinking so if the MM and I are on the same page, I will pass on the straddle for now. I will look at them again after 3:30 PM to see if some theta has helped at all lol.

Today we see some flatness which should continue with lack of news. Possible the SPX will get pinned to 1270 so those with 1285s are safe in my opinion if we close at 1270 since I do not expect a 15 handle set. If you have the 1280s and the SPX is at 1273 or above, I think an 8 point SET is possible and getting out may be advisable. You will have to see if there is anything on the schedule that could push the market at the open tomorrow so check the earnings and economic calendars.
 
Nice down day and the index seems to be getting pinned to 1270 as I said. I think the 1280's might be safe but again 3withcing.... I am thinking the SET will be not as big as NOV but I warn those holding to expect anything... 1270 Staddle at around $6.80. Put in an order for shits and giggles at $6.20 to see lol.
 
OK grabbed the DEC SPX DEC straddle for $6.20. I only did 1 for testing since $620 is not a lot to risk since the SET will not be exactly at 1270 so the loss will not be the full amount. My money, your education.....
 
To all,

I had 12 1280/1285 @ 0.70

Stopped out this morning for a gain of 0.10

30 1280/1285 filled @ 0.55 Just got out for a gain of 0.20 (I want to sleep in peace tonight)

Hedges gain

SPY 135$
SPY 600$
So I am happy with :

235$ + 500$ + 600$ gains in SPX spreads

I also had RIMM 70/75 spreads for 1560$ gain and I will let this one expire worthless.

I couldn't sit and hope SET will save me. After alll that's what Coach calls risk management. I will leave for another month.

I still have 2 SPX 1270 hedges and I want to keep it open for a while.

I feel better and I am going to have a wonderful sleep tonight.

Good luck to you all. Even though SET comes at <1280, I won't regret my action.

Sincerely,


Quote from optioncoach:

Hey all, out of the office for most of the day so will not have much chance to respond.

As for the straddle today, the 1270 and 1275 straddles are price around $8 and that was about the SET I was thinking so if the MM and I are on the same page, I will pass on the straddle for now. I will look at them again after 3:30 PM to see if some theta has helped at all lol.

Today we see some flatness which should continue with lack of news. Possible the SPX will get pinned to 1270 so those with 1285s are safe in my opinion if we close at 1270 since I do not expect a 15 handle set. If you have the 1280s and the SPX is at 1273 or above, I think an 8 point SET is possible and getting out may be advisable. You will have to see if there is anything on the schedule that could push the market at the open tomorrow so check the earnings and economic calendars.
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Picon:

Way to go. It is a great thing to take your profit today and sleep easy knowing you made good trades, partial hedges and/or adjustments and walked away with quite a nice profit. Congrats and review what happened this month and use it as something to improve your approach for the next month. Always move forward.

After SET is determined, please feel free to post your DEC war story/results, I will finalize mine as well. For those of you that have been following I was quite active on the run up, rolling my Puts higher for more credit, rolling my calls higher for more cushion and then closing then for a profit, adding partial hedges and then rolling them into free trades and closing them for a profit. Certainly made my broker happy ;)
 
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