SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
You risk is no less no more than what the risk on separate two verticals. In fact, what you have is a vertical, which has two verticals embedded in it. That is, any spread that is wider than 1 strike can be broken down into smaller spreads.
Don't know a book on just spreads. Good reads, in addition to the usual "must reads", are Cottle's book and "The Option trader handbook" by Jabbour and Budwick.
Quote from LeonPhelps:
Agree, don't like 2&3 as much either.
Now with low vol can buy straddle maybe Aug for DD. If SPX goes down win on July str at 1225 and win on Aug with price move and likely vol increase.
If SPX goes up will start losing on July str and gain some on Aug str.
Could buy Aug straddle at 1225. Would mitigate loss on July str if SPX up since more pos bias. Also closer to delta neutral.
Could do 1/2 #1 and 1/2 buy Aug 1225 straddle
Also maybe buy 1175 July put for Taleb play.
well...you do know exactly what your profit is NOW...but it may make sense to do 1/2 & 1/2 just for comparison/learning purpose. GL
I also went LONG Patience but my wife is looking to SHORT temper lol..
By the way, if any of you are in the Washington, D.C. area I am going to be speaking at the Money Show on July 21st (from the same people who do the Trader's Expo). Stop by and say hi! I am gonna give the same seminar that I gave in Ft. Lauderdale (call ratio spreads on stock positions). It is free to attend and there are always futures and option seminars and products and thinkorswim is always there!
Quote from No Option:
Coach:
Your current positions as I can dissect them:
Long the July DIAPERS.
Short the July SLEEP.
And over the next 20 something years:
Far Out of Your Money...
(Synthetic Call for help?)
He runs a hedge fund which does a lot of calendar spreads last I heard a few years ago but I am sure he makes 7 figures from optionetics
Okay, so back to actually trading. The SPX is up +9.50 before the fed, how does the 1295/1300 for .85mid or 1295/1305 for 1.40mid sound?
What's the general consensus among the talking heads? .25 increase and then we fall slowly?
Anyway, is anyone going to put on a position today BEFORE the announcement, or is everyone waiting for the announcement and the trading the fade?
Peace and let's get back to making some $$.
What's the general consensus among the talking heads? .25 increase and then we fall slowly?
Anyway, is anyone going to put on a position today BEFORE the announcement, or is everyone waiting for the announcement and the trading the fade?
Peace and let's get back to making some $$.
I think putting on a position before the Fed announcement is too much of a gamble since we have no clue how the market is going to react to whatever Bukake says. We are up strongly this morning on anticipation but basically we have gone sideways the last week or so.
Gonna wait and see what happens and if the move is strong enough then look for July. If time is too short then I miss July and look for August. I do not mind investing in cash while the market plays out which is better than rushing into a position just because you do not want to let July go by without a position.
So better to wait and see...
Gonna wait and see what happens and if the move is strong enough then look for July. If time is too short then I miss July and look for August. I do not mind investing in cash while the market plays out which is better than rushing into a position just because you do not want to let July go by without a position.
So better to wait and see...