SPX Credit Spread Trader

[ChrisM]

Quote from MTE:

SPX is a cash index so options on it are index options that trade on CBOE. These are not the same as options on S&P 500 futures that trade on CME. So we got end-of-month options on futures NOT index options.

MTE,

got it, thx. Do you think index options might be changed this way in the future as well ?

 

[El OchoCinco]

Yeah, end of hte month options on the futures is what I though it was. These should be fun and I will definitely play with these when I get the chance in a week or so.

I doubt the CBOE wll follow suit since they have the SPX, XSP and weeklies. They may over-saturate themselves LOL.

 

[BoSox1962]

I'm a bit confused - you're looking to hedge your 1345 short and Coach talked about buying a 126/125 SPY bull put to hedge. Wouldn't you buy that hedge to hedge your short put (assuming you had that as part of an IC), not you short 1345 call side? If the market breaks south, your 1345 short (spread) is OK.

Can you clarify. I'm interestnig in learning more about teh adjustment & hedging side of IC's

Quote from rdemyan:

Coach:

I'm seriously considering buying an XSP or SPY hedge for my 1345 short. I've never placed such a hedge before. Would you mind refreshing my memory on how you decide between one or the other. Isn't the XSP European style so wouldn't it be preferred if I plan to purchase a bull call spread.

 

[El OchoCinco]

The 126/125 partial hedge was for MY bear put spread at 1225/1235 and his question was in general about hedging his 1345 short strike so they are not related conversations.

But please feel free to ask any questions in general on the topic.

Quote from BoSox1962:

I'm a bit confused - you're looking to hedge your 1345 short and Coach talked about buying a 126/125 SPY bull put to hedge. Wouldn't you buy that hedge to hedge your short put (assuming you had that as part of an IC), not you short 1345 call side? If the market breaks south, your 1345 short (spread) is OK.

Can you clarify. I'm interestnig in learning more about teh adjustment & hedging side of IC's

 

[El OchoCinco]

Wanted to re-list all my spread positions for APRIL now after adding a partial hedge for my short put spread:

SPX CALL DIAGONAL SPREAD:

- 8 SPX APR 1340 Calls @ $4.70
+ 10 SPX MAY 1375 Calls @ $3.10

Net Credit = $660


SPX BULL PUT SPREAD:

- 350 SPX APR 1225/1235 Put Spreads @ $0.35

Net Credit = $12,250


PUT SPREAD PARTIAL HEDGE:

+ 100 SPY APR 126/125 Put Spreads @ $0.10

Net Debit = $1,000


( BANANA search word to find for future reference)

 

[Cache Landing]

Wow coach, you should join the majors with your batting average. I was waiting for you to put on a bull put so the market would drop and I could get a better fill on mine. LOL thanks

 

[El OchoCinco]

Well it was delayed cause I put on the bull put spread yesterday.

IT WAS THE PUT HEDGE TODAY that caused the reversal in the market. I just checked the trade confirmation and the SPY put hedge was put on at 11:37 AM.

Those of you with live charting packages may want to confirm when the market peaked and began moving lower....

 

[Cache Landing]

Quote from optioncoach:

Well it was delayed cause I put on the bull put spread yesterday.

IT WAS THE PUT HEDGE TODAY that caused the reversal in the market. I just checked the trade confirmation and the SPY put hedge was put on at 11:37 AM.

Those of you with live charting packages may want to confirm when the market peaked and began moving lower....

Hey.. at least you got your hedge on.

 

[Cache Landing]

The problem is, now it is a bit more of a waiting game for me. I want to see if we are going to stay above 1295 but time's a wastin' on the Apr positions.

 

[piccon]

I told you to not panic. That's the nature of the market. Today was a big reversal day. Going up big and close down big. I like it. I believe it will continue tomorrow and maybe I will start putting some bull put or Condor. I already have 3 major Call Spreads.

Quote from Cache Landing:

The problem is, now it is a bit more of a waiting game for me. I want to see if we are going to stay above 1295 but time's a wastin' on the Apr positions.