SPX Credit Spread Trader

piccon · Mar 10, 2006

This what I experience this month. I may still make money but I could be doing better. I anticipated this down trend before it really occured and I hedged before even opening the Put Spreads.

I opened a SPY 1230 and it's going to expire worthless. I was waiting for the downturn and it never came and I still don't have a PUT Spread for March.

I am still learning and that was my mistake for march and I don't want you to make the same one.

Open Spread and then Hedge it as necessary. (That's my new rule). But I will still make money this month

Cheers

ryank · Mar 10, 2006

Quote from piccon:

I still don't have a PUT Spread for March.

I was never able to get into a put spread for March, but it wasn't for a lack of trying! I waiting until there was just over 20 days left making it that much harder to get filled OTM. The market makers didn't want to play ball with me at the strikes I wanted so I was left with just a call spread that I closed yesterday. Got into a new call spread this morning at 1345/1355 but only did half of my usual amount, I'm a little weary of what would happen if SPX goes north of 1295-1300.

ryan

piccon · Mar 10, 2006

I believe the overall sentiment is for the market to go down in the near future. It won't be able to whistand the Interest Rate pressure and geopolitical situation.

MHO

Quote from ryank:

I was never able to get into a put spread for March, but it wasn't for a lack of trying! I waiting until there was just over 20 days left making it that much harder to get filled OTM. The market makers didn't want to play ball with me at the strikes I wanted so I was left with just a call spread that I closed yesterday. Got into a new call spread this morning at 1345/1355 but only did half of my usual amount, I'm a little weary of what would happen if SPX goes north of 1295-1300.

ryan

ChrisM · Mar 10, 2006

Quote from piccon:

I believe the overall sentiment is for the market to go down in the near future. It won't be able to whistand the Interest Rate pressure and geopolitical situation.

MHO

That`s what this game is all about

CashCache · Mar 10, 2006

Aint that the truth!! I would like to put on April Positions about 5 weeks from expiration. I have a sneaking suspicion that we are going to be right smack dab in the middle of this range at that time. I may have to pull the trigger earlier than I like, or later :mad:

Quote from ChrisM:

That`s what this game is all about

rdemyan · Mar 10, 2006

Got filled on the following today:

APR SPX 1345/1360 bear call at $0.75

Unfortunately, I wasn't careful and negated the 1360 short call I already had from an earlier 1360/1375 spread.

So instead of 1345/1360 and 1360/1375 bear call spreads I now have a 1345/1375 credit spread. Uggh! :mad:

El OchoCinco · Mar 10, 2006

What is the net credit on that spread now? You closed the 1360 call, was there any profit on that position?

You could buy a 1355/1365 bull call spread and leg back into a 1345/1355 bear call and a 1365/1375 bear call but without credits or debits I am just saying this off the top of my head lol.

Nevermind perhaps...

Quote from rdemyan:

Got filled on the following today:

APR SPX 1345/1360 bear call at $0.75

Unfortunately, I wasn't careful and negated the 1360 short call I already had from an earlier 1360/1375 spread.

So instead of 1345/1360 and 1360/1375 bear call spreads I now have a 1345/1375 credit spread. Uggh!

rdemyan · Mar 10, 2006

Net credit on the 30 point spread is $1.50. I inadvertently "cancelled out" the 1360 call by getting the 1345/1360 call spread filled today when I already had an existing 1360/1375 call spread.

Not sure I see what you're suggesting.

Quote from optioncoach:

What is the net credit on that spread now? You closed the 1360 call, was there any profit on that position?

You could buy a 1355/1365 bull call spread and leg back into a 1345/1355 bear call and a 1365/1375 bear call but without credits or debits I am just saying this off the top of my head lol.

Nevermind perhaps...

spreader2 · Mar 10, 2006

Hi Coach! Hope all is well. I've been doing Iron Condors and credit spreads on the SPX and RUT for about 2 years now. I've got my spreads on for April on both the SPX and the RUT. I've only been watching your posts for about a month now. Great work! I'm glad there's a forum for this strategy.

Here are my positions:

SPX: 1195/1180 - 1360/1375 IC for $1.30.

RUT: 650/640 - 800/810 IC for $1.00.

I put both positions on about 11 or 12 days ago. Just thought I'd share and introduce myself to the board.

Good luck everyone. Any comments on the positions?

CashCache · Mar 10, 2006

Do you always put you positions on 7 or 8 weeks away from expiration? Did you leg into each side, or sell the entire condor at one time?

You are WAY out of the money, that's for sure, but I wonder if you could have gotten better credit if you would have waited and used the market swings to skew IV?

Just curious...

-Cash

Quote from spreader2:

Hi Coach! Hope all is well. I've been doing Iron Condors and credit spreads on the SPX and RUT for about 2 years now. I've got my spreads on for April on both the SPX and the RUT. I've only been watching your posts for about a month now. Great work! I'm glad there's a forum for this strategy.

Here are my positions:

SPX: 1195/1180 - 1360/1375 IC for $1.30.

RUT: 650/640 - 800/810 IC for $1.00.

I put both positions on about 11 or 12 days ago. Just thought I'd share and introduce myself to the board.

Good luck everyone. Any comments on the positions?