SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Was wondering why the quote for ES Index was not moving LOL.
Have now selected Futures (SEP ?) and all looks good. The options chains I have currently selected have July expiry. Am I correct in assuming that the price of the July or any other month options chains dependant on the SEP ES Futures (ie the nearest month)? Or is it influenced by the DEC ES Futures?
Thanks
Dagnyt, Thanks for the link
Yeah, I did not mean 401(k) or IRAs or company accounts, I would not expect someone to do major option trading like we are discussing here in those accounts lol, just calls and puts and simple spreads.
Well I decdied to dip into JULY using ES options based on what is going on in the charts.
Sold 300 July ES 1220/1210 Put Spreads @ $0.55
Credit = $8,250
Risk = $141,750
Return = 5.8%
Why I chose these strikes?
We have had a nice bounce off the bottom in the SPX and ES and today, despite the large drop we have bounced off moving average resistance so far.
Also, the low on ES after the huge plunge was 1229 so I placed my sh ort strike outside the 8-month lows. With just over two weeks to expiration I have some support levels and wiggle room to hold on to.
We are likely going to hit some boring churns in the market with the Fed meeting a month away. Some earnings might start coming out as well as the watchful eye on economic data but I expect us to stay a little rangebound without any major news event.
Sold 300 July ES 1220/1210 Put Spreads @ $0.55
Credit = $8,250
Risk = $141,750
Return = 5.8%
Why I chose these strikes?
We have had a nice bounce off the bottom in the SPX and ES and today, despite the large drop we have bounced off moving average resistance so far.
Also, the low on ES after the huge plunge was 1229 so I placed my sh ort strike outside the 8-month lows. With just over two weeks to expiration I have some support levels and wiggle room to hold on to.
We are likely going to hit some boring churns in the market with the Fed meeting a month away. Some earnings might start coming out as well as the watchful eye on economic data but I expect us to stay a little rangebound without any major news event.
Just curious.
Did you look at the SPX as an alternative for the 1220/1210 July put spread. Current midpoint is $0.85, but I have noticed that lately the SPX midpoint on ToS is pretty much meaningless. I can't get filled on anything lately (August) even going $0.10 below the midpoint.
Did you look at the SPX as an alternative for the 1220/1210 July put spread. Current midpoint is $0.85, but I have noticed that lately the SPX midpoint on ToS is pretty much meaningless. I can't get filled on anything lately (August) even going $0.10 below the midpoint.
dumb question here coach but is this ES trade comparable to say a 1210/1200 "cash" spx trade..IOW since ES is ~ 10 pts higher than the cash trade are the options also roughly 10 pts higher? thanks RR
I looked at it too but did you notice to get .85 the spx would have to trade at 1260..8 pts lower than now
I am having more success shaving off with Es lately. I will still do credit spreads on SPX but the b/a spreads on the ES strikes I was looking at were nice and tight so I legged in nicely.
Remember that ES is $50 a point and SPX is $100 a point.
Remember that ES is $50 a point and SPX is $100 a point.