SPX Credit Spread Trader

Quote from andysmith:

Ys, but today has a capitulation feel to it... I'm willing to bet we've put in a short term low.
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I tend to agree, 1M contracts traded on ES by noon is HUGE by all standards. i have not seen this in a long long time.

However, with so much panic in the air much more volatility is to be expected at this point.
 
Bad luck on that one Scienter. For more thoughts on possible hedging approaches:

http://www.elitetrader.com/vb/showthread.php?s=&postid=971374&#post971374


Quote from scienter:

Things got a little too hot for me today. Ended up selling the spread --covered approx. half the loss with my debit hedge and of course the call side of the IC. Still, wiped out 2 months of gains....just took a bit too much risk legging into the put side of the IC this month. Discipline is huge and I just jumped the gun on my stochastic confirmation this past week.

For JUN I'm still sitting at 1375/80 @ .5 AND
recently got 1240/35 filled @ .5

Are you still in your 1270 (or was it 1260?)

I was actually thinking a bit more about how you hedge. I like the idea of being proactive, e.g., buying SPY puts cheap when the underlying is in an OS condition in anticipation of a correction and then followed with a placement of a bull put. Have you had success with this on a regular basis? I imagine this type of hedge cuts bigger into your profits on months were you can't complete the IC...
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Good luck with the 1275....with the hedge you have, I agree, you should be ok, unless of course the institutions step things up a bit this afternoon, which would be doubtful. BTW, I did close the 1280 at 10:00 this AM b/f the breach @ 1285...


Have you/do you regularly hedge as I described below, or have I misunderstood recent posts?




" was actually thinking a bit more about how you hedge. I like the idea of being proactive, e.g., buying SPY puts cheap when the underlying is in an OS condition in anticipation of a correction and then followed with a placement of a bull put. Have you had success with this on a regular basis? I imagine this type of hedge cuts bigger into your profits on months were you can't complete the IC... "
 
Update of my 1265/1275 protection scheme:


Opened :
10 MAY CALL 1340/1350 @ 1.50 credit
10 MAY PUT 1265/1275@1.80 credit
10 MAY SPY 129/128 @ 0.35 debit
15 JUN SPY 128@1.50

We will see.

Quote from scienter:

Things got a little too hot for me today. Ended up selling the spread --covered approx. half the loss with my debit hedge and of course the call side of the IC. Still, wiped out 2 months of gains....just took a bit too much risk legging into the put side of the IC this month. Discipline is huge and I just jumped the gun on my stochastic confirmation this past week.

For JUN I'm still sitting at 1375/80 @ .5 AND
recently got 1240/35 filled @ .5

Are you still in your 1270 (or was it 1260?)

I was actually thinking a bit more about how you hedge. I like the idea of being proactive, e.g., buying SPY puts cheap when the underlying is in an OS condition in anticipation of a correction and then followed with a placement of a bull put. Have you had success with this on a regular basis? I imagine this type of hedge cuts bigger into your profits on months were you can't complete the IC...
More...
 
This correction is faaantastic IMO. Breathing volatility back into the market after a mind-numbing 6 months.

For the many millions of lurkers/non-contributors/newbies following this thread: be mindful of SET,NDS for your SPX/NDX positions, don't want to see any unfortunate surprises :D

MoMoney.
 
Yes.

Most of the time. The market can't stay in the oversold or overbought condition for ever. The market is dynamic; so if you are on the right side, you wil be ok.

I bought some calls this morning on RUT and I am also adding some SPY calls later today.



Quote from scienter:

Good luck with the 1275....with the hedge you have, I agree, you should be ok, unless of course the institutions step things up a bit this afternoon, which would be doubtful. BTW, I did close the 1280 at 10:00 this AM b/f the breach @ 1285...


Have you/do you regularly hedge as I described below, or have I misunderstood recent posts?




" was actually thinking a bit more about how you hedge. I like the idea of being proactive, e.g., buying SPY puts cheap when the underlying is in an OS condition in anticipation of a correction and then followed with a placement of a bull put. Have you had success with this on a regular basis? I imagine this type of hedge cuts bigger into your profits on months were you can't complete the IC... "
More...
 
Quote from piccon:

.

I bought some calls this morning on RUT and I am also adding some SPY calls later today.
More...

i am ready to pull the trigger on some bull call spreads at the first sign of a reversal. havent decided which instrument just yet.
 
Quote from ready:

Anyboby rolling out of May bull puts.
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Didn't roll, just reversed the position on the jump right at the open this morning. (Bought back the MAY 1275 shorts) Unfortunately I was just looking to B/E. If I'd been willing to stick it out, I could have made a grip of money on the sustained drop.
 
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