SPX Credit Spread Trader

I am gonna try and close my 1165/1175 puts for JAN and roll them higher towards 1205 or so for more premium. I am still very wary about touching any calls these first two months based on the charts I have posted here which show a continuation of the bull rally since OCT. Be careful about adding call spreads unless you are DEEP DEEP OTM.


Quote from rdemyan:

Anybody contemplating bear calls this week?

The traders I follow made the following point:

"The Santa Claus rally refers to the last five days of the year and the first two days of the next."

Also:

"If Santa fails to call, the bears may come to Broad and Wall." "Typically weakness between Christmas and New Years is a leading indicator of selling to come in January."

I think I 'll wait at least through today and then contemplate some bear calls.
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So, Coach. This looks like an opportunity to sell additional bull puts. The 1210/1200 has a mid at $0.55 as I type this.

Do you think this is just low volume computer sell programs or is something more serious going on.
 
I think it is a negative reaction to the yield curve news (inverting) but it is still on low volume and as my attached chart below shows we still have bullish support.

Certainly a good day to grab some last bull put spreads for JAN before premium really begins to dry up. 1200 or 1210 is really as high as I would go since you want to err on the side of caution in case we do break through that support level. No telling where we would stop. I would prefer to be below 1200 so start there before grabbing the 1200/1210.



Quote from rdemyan:

So, Coach. This looks like an opportunity to sell additional bull puts. The 1210/1200 has a mid at $0.55 as I type this.

Do you think this is just low volume computer sell programs or is something more serious going on.
More...
 

Attachments

On Friday I called to have the February 1335 and 1340 added. They usually get added the next trading day, but it didn't happen today. Maybe tomorrow. When you call would you mind also requesting the 1335 and 1340 again. More squeaky wheels :)

Oh yeah, the number is:

1-888-options





Quote from gatorplease:

Where is it you call to add strikes for the SPX? Would Like to see a 1320 and 1340 for Feb
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Quote from rdemyan:

On Friday I called to have the February 1335 and 1340 added. They usually get added the next trading day, but it didn't happen today. Maybe tomorrow. When you call would you mind also requesting the 1335 and 1340 again. More squeaky wheels :)

Oh yeah, the number is:

1-888-options
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Got it Thanks. Yeah 1340 would be nice.
 
Quote from momoneythansens:

Just a FYI,

Some people that have analyzed option prices w.r.t. theta/time decay, maintain that weekends etc. are not a "free lunch" i.e. buying options on Friday P.M. in anticipation of getting some decay over the weekend by Monday A.M. does not in reality happen. The decay is priced in before the weekend (Thursday/Friday). It's as if the weekends don't really exist for the purposes of theta i.e. theta get's applied elastically - another deviation from common pricing models. I would suggest this is consistent with casual observations.

My personal minimal analysis of this has confirmed the supposition...but that means squat. Suggest folks do their own analysis rather than taking anyone's word for it.

Whether this applies to three day weekends or not. Again, I have no idea :)

MoMoney.
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I was watching Dr. J on CBOE TV tonight and he addressed the time decay over a holiday weekend. Is he a lurker on this board lol :). Check it out at www.cboe.com.
 
The market is trading is such a narrow range.

Does anyone know if any news is expected today or in the next few days which can cause the market to trend?

The charts on OEX seem to show an ascending triangle.......?
 
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