I put a 1315-1325 bear call on 2 fridays ago at the morning highs and took out half on the most recent pullback for %80 of my credit. The remaining half I converted into a 1305-1315-1325 butterfly for a .10 credit. If spx closes above above 1305 and below 1315, dinner is on me! Looks like its possible, should be interesting.
SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
The MMs indeed need to poked from time to time!
My order was in for about an hour sitting around the mid, when the b/a went
.60 - 1.10 1180 put
70 - .75 1165 put
Wanted a debit of .25
No fill for about 15 mins, so I changed my order from .25 to even, back to .25 and they filled it
/poke poke poke
Sold my original vert last week at .50 so I have converted my vertical into a long butterfly at a CREDIT
BTO 20 SPX Sep 1150 put
STO 40 SPX Sep 1165 put
BTO 20 SPX Sep 1180 put
.50 - .25 = net credit of .25
Riskless position
For those wondering, I could have closed out my vert for .20, but felt the fly was worth a nickel
edit: fixed typo on the 1180/1165
My order was in for about an hour sitting around the mid, when the b/a went
.60 - 1.10 1180 put
70 - .75 1165 put
Wanted a debit of .25
No fill for about 15 mins, so I changed my order from .25 to even, back to .25 and they filled it
/poke poke pokeSold my original vert last week at .50 so I have converted my vertical into a long butterfly at a CREDIT
BTO 20 SPX Sep 1150 put
STO 40 SPX Sep 1165 put
BTO 20 SPX Sep 1180 put
.50 - .25 = net credit of .25
Riskless position
For those wondering, I could have closed out my vert for .20, but felt the fly was worth a nickel
edit: fixed typo on the 1180/1165
The Aug/Sept Double Diagonal Update:
Well.. gone sailing today, finished dead last..... only to come home to the market EXTENDING itself for a third consecutive day.
This will be the first Double Diagonal experience for us to push the envelope.... the short
Refresher:
Original Positions (on attached graphic)
Aug 1225p/Sept 1200p
Aug 1300c/Sept 1325c
Yesterday the puts had broken even... today, they're down $975
Yesterday the calls were up $3200... today, they're up only $2375
The reason I'm bringing up the point... is we're 5 points from our short Aug 1300c.... and the double diagonal is still profitable.. (9.6%), with one day to go. And we're not feeling too much presure ... yet.... although the VIX killed us today. The VIX is at a one-month low... the day before expiration..... not what we want when you're long VEGA.
Here's the scenario.....
If the market closes right at 1300.... we have max profit $4,400, if it continues up (along with set)... 1307 is B.E. There's $2.10 left in the Aug 1300c, with one day to go... and that is the remaining profit to be had in the position (plus a little 1325c minus a little 1200p).... and we have a $7 window of cushion to the upside.... 1307. It kinda feels like we're selling a one day naked 1300c, with a with a little protection to the upside.
So....
Do you HOLD them or FOLD them?
Full graphics available, with P/L if movement goes up or down $10
Appreciate your thoughts with explanations.... we can follow up on this experience after expiration?
This should make for an interesting discussion.
M~
Well.. gone sailing today, finished dead last..... only to come home to the market EXTENDING itself for a third consecutive day.
This will be the first Double Diagonal experience for us to push the envelope.... the short
Refresher:
Original Positions (on attached graphic)
Aug 1225p/Sept 1200p
Aug 1300c/Sept 1325c
Yesterday the puts had broken even... today, they're down $975
Yesterday the calls were up $3200... today, they're up only $2375
The reason I'm bringing up the point... is we're 5 points from our short Aug 1300c.... and the double diagonal is still profitable.. (9.6%), with one day to go. And we're not feeling too much presure ... yet.... although the VIX killed us today. The VIX is at a one-month low... the day before expiration..... not what we want when you're long VEGA.
Here's the scenario.....
If the market closes right at 1300.... we have max profit $4,400, if it continues up (along with set)... 1307 is B.E. There's $2.10 left in the Aug 1300c, with one day to go... and that is the remaining profit to be had in the position (plus a little 1325c minus a little 1200p).... and we have a $7 window of cushion to the upside.... 1307. It kinda feels like we're selling a one day naked 1300c, with a with a little protection to the upside.
So....
Do you HOLD them or FOLD them?
Full graphics available, with P/L if movement goes up or down $10
Appreciate your thoughts with explanations.... we can follow up on this experience after expiration?
This should make for an interesting discussion.
M~
Hi Sailing,
Apologies as I have a question instead of a contributing thought.
My question is how you got such good prices to start with.
Your PUT DIAGONAL cost you 2.20 and your CALL DIAGONAL cost you 0.30. How'd you do it ?
I can't for the life of me get these prices. I got a SEP/OCT 1350/1375 Call diagonal for 1.10 (could have got it for 1.05).
I tried to get a SEP/OCT 1250/1225 Put diagonal for 3.00 and did not even get filled for that, even with such low VIX of around 12.50 when I tried for these diagonals
I tried different short strikes from the underlying and the prices are around the same high level.
eg. Yesterday when SPX was around 1288, the 1225/1200 Put diagonal was around 3.10 and the 1250/1225 Put diagonal was around 3.00, which was the one i was trying to get.
My questions are if you were to enter diagonals now, can you pls post your trades asap so i can see how you got the prices you got? But i guess these prices are correct as burrben recently got his 1225/1200 diagonal at 3.20
if i entered at these prices, will they still a similar risk profile as your double diagonal? Would really appreciate it if you could post a graph from your TOS software for my 1225/1200P and 1350/1375 P double diagonal
So sorry for the questions and appreciate any comments you may have.
Scoobie
Apologies as I have a question instead of a contributing thought.
My question is how you got such good prices to start with.
Your PUT DIAGONAL cost you 2.20 and your CALL DIAGONAL cost you 0.30. How'd you do it ?
I can't for the life of me get these prices. I got a SEP/OCT 1350/1375 Call diagonal for 1.10 (could have got it for 1.05).
I tried to get a SEP/OCT 1250/1225 Put diagonal for 3.00 and did not even get filled for that, even with such low VIX of around 12.50 when I tried for these diagonals
I tried different short strikes from the underlying and the prices are around the same high level.
eg. Yesterday when SPX was around 1288, the 1225/1200 Put diagonal was around 3.10 and the 1250/1225 Put diagonal was around 3.00, which was the one i was trying to get.
My questions are if you were to enter diagonals now, can you pls post your trades asap so i can see how you got the prices you got? But i guess these prices are correct as burrben recently got his 1225/1200 diagonal at 3.20
if i entered at these prices, will they still a similar risk profile as your double diagonal? Would really appreciate it if you could post a graph from your TOS software for my 1225/1200P and 1350/1375 P double diagonal
So sorry for the questions and appreciate any comments you may have.
Scoobie
You're right.....
sorry... it was late last night.
M~
sorry... it was late last night.
M~
Quote from scoobie27:
Murray, don't want to be a party pooper but I think your return in your post is only 5.6%.
Call gain 2375
Put loss 975
Profit as per your posting 1400
Margin 25000
Return 1400/25000 = 5.6%
Still a great return. If i could get that every month, i would put my house on it
Do you have an options analysis software progrm?
If not... there are many available.... opening a ToS account would be a solution.
M~
If not... there are many available.... opening a ToS account would be a solution.
M~
Quote from scoobie27:
Hi Sailing,
Apologies as I have a question instead of a contributing thought.
My question is how you got such good prices to start with.
Your PUT DIAGONAL cost you 2.20 and your CALL DIAGONAL cost you 0.30. How'd you do it ?
I can't for the life of me get these prices. I got a SEP/OCT 1350/1375 Call diagonal for 1.10 (could have got it for 1.05).
I tried to get a SEP/OCT 1250/1225 Put diagonal for 3.00 and did not even get filled for that, even with such low VIX of around 12.50 when I tried for these diagonals
I tried different short strikes from the underlying and the prices are around the same high level.
eg. Yesterday when SPX was around 1288, the 1225/1200 Put diagonal was around 3.10 and the 1250/1225 Put diagonal was around 3.00, which was the one i was trying to get.
My questions are if you were to enter diagonals now, can you pls post your trades asap so i can see how you got the prices you got? But i guess these prices are correct as burrben recently got his 1225/1200 diagonal at 3.20
if i entered at these prices, will they still a similar risk profile as your double diagonal? Would really appreciate it if you could post a graph from your TOS software for my 1225/1200P and 1350/1375 P double diagonal
So sorry for the questions and appreciate any comments you may have.
Scoobie