SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Yeah I am watching it hit resistance as well and wonder if it will pullback for the close or break through. I doubt it will really break through strongly since the news that pushed the market higher was out at the open or so and I do not see any last minute strength coming in for no reason. In fact some profit taking and resistance shorters might come in anyway for a pullback.
If no pullback today then look for it tomorrow. This will affect APR call spreads if we push to or above 1300. I have an order open for 1355 call spreads to take advantage of the surge but no fill yet as I am being agressive on the limit price.
If no pullback today then look for it tomorrow. This will affect APR call spreads if we push to or above 1300. I have an order open for 1355 call spreads to take advantage of the surge but no fill yet as I am being agressive on the limit price.
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One good rating in Barron's and it goes to h*ll...
...just kidding.
They were having problems in the first 1/2 hour and again into the last 1/2 hour or so.
I was logged in all day in between those times.
...just kidding.
They were having problems in the first 1/2 hour and again into the last 1/2 hour or so.
I was logged in all day in between those times.
Coach,
Your opinion appreciated on our calendar diagonals!
We've been dabbing into double diagonals as of late. Seems too good to be true. And we love volatility... it really helps this trade... the position takes in credit and profits through a tremendous range.... and risk is virtually eliminated. For example:
For the current month!
Bought 10 May 1350c, Sold 7 April 1320c for even
Bought 10 May 1190p, Sold 5 April 1225p for even
If market stays stagnant... about 4% return, assuming no volatility change. Shorts expire worthless, long positions will retain some premium for profits.
Any movement towards short strikes... 5-15%
At strikes.... 15-25%
At lower put strike... with increase volatility... 30%
Beyond strikes.... . could even be better!
Love the risk profile of this trade.....
Although the position is margin intensive.... the risk is so minimal... and if managed... non-existent.
In fact, we're praying to the volatility Gods as we speak.
Murray
P.S.
All six March spread positions expiring worthless...
Current April Positions:
SPX April 1190p/1200p = .60
SPX April 1350c/1360c = .65
Your opinion appreciated on our calendar diagonals!
We've been dabbing into double diagonals as of late. Seems too good to be true. And we love volatility... it really helps this trade... the position takes in credit and profits through a tremendous range.... and risk is virtually eliminated. For example:
For the current month!
Bought 10 May 1350c, Sold 7 April 1320c for even
Bought 10 May 1190p, Sold 5 April 1225p for even
If market stays stagnant... about 4% return, assuming no volatility change. Shorts expire worthless, long positions will retain some premium for profits.
Any movement towards short strikes... 5-15%
At strikes.... 15-25%
At lower put strike... with increase volatility... 30%
Beyond strikes.... . could even be better!
Love the risk profile of this trade.....
Although the position is margin intensive.... the risk is so minimal... and if managed... non-existent.
In fact, we're praying to the volatility Gods as we speak.
Murray
P.S.
All six March spread positions expiring worthless...
Current April Positions:
SPX April 1190p/1200p = .60
SPX April 1350c/1360c = .65
Guys, don't forget to congratulate Phil on passing his series 7!
Phil is now ready to be a professional trader! Welcome to the world of haircuts Phil!
Congrats!
Phil is now ready to be a professional trader! Welcome to the world of haircuts Phil!
Congrats!
Thanks MAV lol! They must have know me ahead of time because I swear I had like 30 option questions...
I hope you guys have deep pockets because the first day I am selling 1000 SPX straddles and swinging for the fences! @%#$ it.... full steam ahead muwaaaaaaa....
Looking forward to a haircut actually.
I hope you guys have deep pockets because the first day I am selling 1000 SPX straddles and swinging for the fences! @%#$ it.... full steam ahead muwaaaaaaa....
Looking forward to a haircut actually.
Murray, I am actually very interested and did not have time until now to look at it.
Could you walke me through the ratio you chose for the long and shorts? Also, I would be nervous about the 1320 and 1225 strikes, how do the longs (without me running to an option pricing model) help out as far as delta protection and stuff if the market moves higher?
You know me, if I follow it, I will have to do a real one to see it with real money
Could you walke me through the ratio you chose for the long and shorts? Also, I would be nervous about the 1320 and 1225 strikes, how do the longs (without me running to an option pricing model) help out as far as delta protection and stuff if the market moves higher?
You know me, if I follow it, I will have to do a real one to see it with real money