SPX Credit Spread Trader

[rallymode]

Quote from daved275:



Also, I have the same question for you on the OEX. When do you look to close out of the trade when it approaches your short price? How close must it get?

DAVE

not to sound mean or anything, but you should've asked that question BEFORE entering into this trade. As a matter of fact, you should know your exit before getting into any trades.

as far as your question goes, there is only 1 day left in rut options. Your short strike of 800 is pretty safe in my opinion unless you expect yesterday's move to happen again tomorrow.

 

[piccon]

It's very volatile one. I think you will be ok here.

If it's close between 787 and 790 before Friday, I would consider closing the Call. But for now you still have a good cushion.

I hope this helps. Good luck

Quote from daved275:

Piccon, Coach, and anyone else that can give me an answer,

I have the April 800/810 calls and 650/640 puts iron condor for
RUT and was wondering at what price do you look to close out the call side of the trade. I'm thinking of getting out if the RUT goes to 790 or above. Does this sound about right?

Also, I have the same question for you on the OEX. When do you look to close out of the trade when it approaches your short price? How close must it get?

DAVE

 

[Hybone]

I am not sure why are you worried about the APR short 800 strike for the RUT given the recent run up and with only 1.5 days to exp. If you worry about it now, it :seems" to imply that you maybe a little too risk adversed for the RUT. Just my 2 cents. But I believe the 800 should be relatively safe for APR.

Quote from daved275:

Piccon, Coach, and anyone else that can give me an answer,

I have the April 800/810 calls and 650/640 puts iron condor for
RUT and was wondering at what price do you look to close out the call side of the trade. I'm thinking of getting out if the RUT goes to 790 or above. Does this sound about right?

Also, I have the same question for you on the OEX. When do you look to close out of the trade when it approaches your short price? How close must it get?

DAVE

 

[Hybone]

I love the RUT. I have had good success with it.

Quote from piccon:

RUT is a wild cat.

I am out of my position

I had 15 780/790/720/710 condor for 1.65. I willl let the Bull PUT expire worthless. I get out of 780/790 for 1.45

So I will make 0.20*15=$300 on the condor

Hedges: Bought 1 RUT 770@4.50. Sold back at 6.40 Gain $190

I also had 8 IWM77 @0.60; sold back @0.50 lossof 8*10=$80

Total: +300+190-80= Gain of $410.

Hedging can be very good sometimes. That's my lesson

I will ythink twice before trading this thing again. But I am Happy I am out safe. I won't regret if RUT goes back to 760 this afternoon but I know I will live another day in peace without cold sweat.


For those interested in my RUT trading you can go to picconrut to search this info later

I am still working with OEX 595/605 , OEX 600/605, OEX 605/610. 595/605 is the one I need to watch closely. Otherwise I am ok for this month. I am still in target to have a pretty good month. 4 to 5% is ok for me but I am looking for more.

 

[ChrisM]

Quote from daved275:

Piccon, Coach, and anyone else that can give me an answer,

I have the April 800/810 calls and 650/640 puts iron condor for
RUT and was wondering at what price do you look to close out the call side of the trade. I'm thinking of getting out if the RUT goes to 790 or above. Does this sound about right?

Also, I have the same question for you on the OEX. When do you look to close out of the trade when it approaches your short price? How close must it get?

DAVE

Dave,


Try to compare models by calculating expected return distribution of your IC.

Check also conversion of your bear call spread into iron fly and compare results.

 

[andysmith]

rdemyan,

I wanted to alert you to this, just in case -- for all 1256 type positions that are open at year end, you have to have them marked-to-market. In other words, you act as if you close those positions at year's end, and that's how you calculate your cap gain/loss on Form 6781.

If you had 1256 type open positions at the end of 2005 in your OX account, please make sure they are M2M.

Quote from rdemyan:

The 6781 was automatically generated by GainsKeeper. To be honest, I don't understand it exactly and don't have the time to understand Section 1256 for the 2005 taxes. But the 6781 reduced my cap gains by over $3000.

Actually, I guess it will be closer to around 150 this year.

Do you know if you can integrate GainsKeeper directly with ToS or do you have to do a download from ToS and an import/upload into Gainskeeper.

 

[daved275]

Quote from rallymode:

not to sound mean or anything, but you should've asked that question BEFORE entering into this trade. As a matter of fact, you should know your exit before getting into any trades.

as far as your question goes, there is only 1 day left in rut options. Your short strike of 800 is pretty safe in my opinion unless you expect yesterday's move to happen again tomorrow.

I do know my exit and did know it before I put on the trade. My exit is if it breaks above 790. I value everyone's opinion and just wanted to see what those of you that do iron condors on RUT feel about what the closing out price should be. It never hurts to get opinions from others especially when they probably have more experience. I learned a long time ago that you will never know everything and that you need to constantly educate yourself if you are to get anywhere.

DAVE

 

[daved275]

Rallymode, piccon, hybone, and ChrisM,

Thanks for all of your responses.

DAVE

 

[rallymode]

Quote from daved275:

I do know my exit and did know it before I put on the trade. My exit is if it breaks above 790.

if that was ur strategy then why try to change it now? Just wait till it breaks 790, rut aint going over that this month. Just ask coach's cat

 

[Cache Landing]

Quote from rdemyan:

Cache:

If you don't mind my saying so, it was an excellent trade either way. I know if I had made that trade I would have been glad to have gotten the huge net credit that you did.

I get a bit self critical when I make mistakes while chasing pennies. Thanks for the compliments though.