SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Another lesson learned.
The Aug 1220/Jul 1240 put diag spread was filled to add to my previous position. I once more looked at the profile for the entire position == it looked really terrific, too good to be true.
And discovered that I had made a "slight" error in how I entered it.
Ouch! I had the expiration reversed. I had double-checked everything except where I placed my expiration date.
Risk vs reward is now worse. Unless the market decides to fall below 1230 within the next week.
The Aug 1220/Jul 1240 put diag spread was filled to add to my previous position. I once more looked at the profile for the entire position == it looked really terrific, too good to be true.
And discovered that I had made a "slight" error in how I entered it.
Ouch! I had the expiration reversed. I had double-checked everything except where I placed my expiration date.
Risk vs reward is now worse. Unless the market decides to fall below 1230 within the next week.
so you have a LONG Aug 1220 and a Short July 1240 put diag or is it a SHORT Aug 1220 and a LONG July 1240Let me post the entire position:
L Aug 1330, S Jul 1310 call
L Aug 1220, S Jul 1240 put.
Market is presently at 1280 (SP futures).
My initial position was the call diagonal, adding the put side on Friday. In my software I accidently reversed the expiration on the puts.
Oh well, the risk profile is tolerable on the down side, especially if volitility increases. Only two weeks to stay above my short, and then do roll-over in Aug.
L Aug 1330, S Jul 1310 call
L Aug 1220, S Jul 1240 put.
Market is presently at 1280 (SP futures).
My initial position was the call diagonal, adding the put side on Friday. In my software I accidently reversed the expiration on the puts.
Oh well, the risk profile is tolerable on the down side, especially if volitility increases. Only two weeks to stay above my short, and then do roll-over in Aug.
Only 17 days to expiration so time to put on July positions has pretty much passed for FOTM credits. Here is what I am finding this morning (going roughly 2 sigmas out):
1210/1220 July put spread = $.50 mid
The 1220 short has a probability of expiring OTM of about 10%
1330/1340 July call spread = about zip, maybe a very small credit.
The 1330 short has a probability of expiring OTM of about 3%
Going closer to the money:
A 1310/1320 July call spread has a mid of $.75 right now. The 1310 short has a probability of expiring OTM of about 11%.
I think I will most likely be passing on any July plays, August is 45 days out and my preference is to shoot for the 45/15 day cycle instead of a 30/expiration cycle. I haven't looked at August positions yet, will do that tomorrow or Wednesday and see if anything looks good.
1210/1220 July put spread = $.50 mid
The 1220 short has a probability of expiring OTM of about 10%
1330/1340 July call spread = about zip, maybe a very small credit.
The 1330 short has a probability of expiring OTM of about 3%
Going closer to the money:
A 1310/1320 July call spread has a mid of $.75 right now. The 1310 short has a probability of expiring OTM of about 11%.
I think I will most likely be passing on any July plays, August is 45 days out and my preference is to shoot for the 45/15 day cycle instead of a 30/expiration cycle. I haven't looked at August positions yet, will do that tomorrow or Wednesday and see if anything looks good.
Hey Ryan..its interesting with a low volume day I've gotten a couple of fills...finally got a good chance to roll down my 1245put to 1235....at least getting the target off my back
also got filled on 1310/1320 calls...a little close to the money but with decent credit. .85. I guess with the "big" boys away we retail mice can play
also got filled on 1310/1320 calls...a little close to the money but with decent credit. .85. I guess with the "big" boys away we retail mice can play