SPX Credit Spread Trader

[RichardRimes]

nice idea coach....I had bought a debt call spread a few days ago to protect my future Aug call credit spread. Good idea to put on a small debt put spread now to protect my Aug put spread. That seems to be pretty cheap premium.

edit...humm think I'll wait a day or two

 

[rallymode]

phil has crossed over to the dark side

 

[El OchoCinco]

Actually I am not following All 4 positions are separate positions not to hedge each other . Maybe I missed something in RR's comment

 

[Neoxx]

Greetings all.

With earnings season upon this, I've decided to give equities a miss and open a couple of ETF/index spreads.

This will be my first SPX trade.

Been trying for 1290/1300 Aug bear call for 2.30.

Too aggressive? (in either sense)

 

[RichardRimes]

I just had second thoughts and decided to play the rally a couple more days

 

[RichardRimes]

Quote from Neoxx:

Greetings all.

With earnings season upon this, I've decided to give equities a miss and open a couple of ETF/index spreads.

This will be my first SPX trade.

Been trying for 1290/1300 Aug bear call for 2.30.

Too aggressive? (in either sense)

everyone will have a different opinion..I think its agressive... for ME. You first have to get filled

 

[El OchoCinco]

If you are doing close to the money credit spreads a la Rally then it is not too bad. Last two peak highs were below 1290.

However not too crazy about the premium. I would prefer something a little higher to play it like Rally.

Quote from Neoxx:

Greetings all.

With earnings season upon this, I've decided to give equities a miss and open a couple of ETF/index spreads.

This will be my first SPX trade.

Been trying for 1290/1300 Aug bear call for 2.30.

Too aggressive? (in either sense)

 

[yip1997]

Quote from RichardRimes:

Hey Apex....I've been trying to figure it out as well. One thing I've started doing is looking at Theo Val's then doing the math to get a Theo Val of the spread. On one I did this am it was .20 below the mid. Your right you really can't trust the mid. But the mid on the computer is based on the bogus offerings of the SPX MM

Richard,

How do you use the theoretical value? You don't know the IV, and IV are different for the two strikes. You can't use HV for your calculation.

 

[Neoxx]

Quote from RichardRimes:

everyone will have a different opinion..I think its agressive... for ME. You first have to get filled

Mark currently at 2.85... how far do you have to go to get filled?!

 

[Neoxx]

Quote from optioncoach:



However not too crazy about the premium. I would prefer something a little higher to play it like Rally.

2 part question-

1) What sort of premium would you be looking for?

2) How would you get the MMs to budge? Wasn't even filled when the mark was 2.95.

I'm only putting 5 contracts on - does increasing position size secure a fill?