SPX Credit Spread Trader

I was just going to say the opposite thing, Coach. From the standpoint of avoiding the black swan. The market has never had a catastrophic, sudden rise, therefore, call spreads are pretty darn safe. On the other hand, diagonals work well on the put side because they are a more guarded position should the market take a swift tumble.

DISCLAIMER: I am new to this and my advice should be weighted far less than most of the good folks on this forum.

Bob
 
What you say is true, although diagonals do suffer from black swan, just no way near as much.

But it is a preference really. Because the market usually bleeds highier, it makes the diagonals preferable for me on the call side.

On the put side, I am just not in "touch" with the debit aspects and how I would trade it.

However, with IV so low, I may dip my fingers in put diagonals again...

But I still l ike deep OTM put verticals :).


Quote from blure2:

I was just going to say the opposite thing, Coach. From the standpoint of avoiding the black swan. The market has never had a catastrophic, sudden rise, therefore, call spreads are pretty darn safe. On the other hand, diagonals work well on the put side because they are a more guarded position should the market take a swift tumble.

DISCLAIMER: I am new to this and my advice should be weighted far less than most of the good folks on this forum.

Bob
More...
 
Yes, I am daytrading the ES, YM, ER2 and have added the Euro and Pound futures.

Of course I am not daytrading all of them at the same time, I look for opportunities in all of them at different times of the day (Currency futures are early morning mainly, indexes are after market opens) and go where I see the money :).
 
yes, for intraday, it is purely technical :D. I use technical for both month to month credit spreads and daytrading but for daytrading it is more important.
 
You must log in or register to reply here.
Back
Top