SPX Credit Spread Trader

[Maverick74]

Quote from DonnaV:

SEE I think the Odds are NEVER the same.....Much greater odds that we will never see what we think we may ...when you place a debt spread you have a "pinpoint" in mind....credit spread you have an "approximation" NO?......

100% wrong. LOL.

As a brit might say, you are laboring under a false apprehension.

 

[rdemyan]

Hey Donna:

I caught that post that you deleted. And I must say making that kind of money DOES make you more interesting.

I've been looking for a sugar momma. Do you think Mikey would mind?

Quote from DonnaV:

so far.....my success rate has been pretty much %100...after my first attempt at IC's on the spx ( I lost $50) I have been VERY successful...esp these first 4 months of this year. Of course the SPX has been very tame! I do have to brag just a bit...I killed April...made enough to buy a new (little) car May may kill me.. [/QUOTE

 

[nlslax]

Quote from rallymode:

That painfully reminds me of my first year of options trading where i thought selling premium and collecting on theta was the holly grail.

It wasnt until later that i learned to make money with options not only do you have to buy cheap(below fair value), and sell expensive but ALSO you have to be right on the direction or lack of direction in the underlying.

Simply put, the credit we all receive when we sell a spread isnt really our credit until the options expire. Thinking that it belongs to us is a misconception that many traders have albeit their preference over using debit spreads.

Interesting comments re debit vs credit spreads. For the last 60 days most of my trades have been long calenders, when previously most of my trades were credit spreads. Funny thing is I've noticed the stress levels dealing with the calenders is far less than the credit spreads. Maybe it's knowing the maximum out of pocket is already spent vs trying to hold on to a credit that might be taken away.

Just my $.02

 

[rdemyan]

I think Mav hit on the head when he said something to the effect that there is no preordained reason to hold a credit spread till expiration. I'm pretty sure Coach feels the same way since he advocates risk management above every thing else at least with regards to credit spreads. It's all about risk management.

After I devastated my account last summer, I vowed to never hold a credit spread to expiration if I didn't feel comfortable. I would much rather give back some nickels and dimes than losed 10s and 20s. I rarely hold bull puts to expiration since I do worry about black swan events and my probable inability to effectively control them.

I've followed this strategy and since last summer have never really broken a sweat overly worrying about my spreads. Sure I get somewhat concerned, but I haven't sweated bullets yet (although May may prove to get the glands going).

Quote from nlslax:

Interesting comments re debit vs credit spreads. For the last 60 days most of my trades have been long calenders, when previously most of my trades were credit spreads. Funny thing is I've noticed the stress levels dealing with the calenders is far less than the credit spreads. Maybe it's knowing the maximum out of pocket is already spent vs trying to hold on to a credit that might be taken away.

Just my $.02

 

[rdemyan]

You know I'm only kidding and will never reveal any of that post.

Quote from DonnaV:

shit...week moment i posted that then I tried to delete it yes Mikey WOULD mind!

 

[riskarb]

Quote from rdemyan:

You know I'm only kidding and will never reveal any of that post.

RD -- send it to me in a PM. Thanks.







j/k

 

[RichardRimes]

Quote from rdemyan:

You know I'm only kidding and will never reveal any of that post.

OK how much will it cost me

 

[rdemyan]

Actually, after risk's post, I should probably qualify what 'never' means. Never means that I won't reveal anything without some quid pro quo.

Let me reflect a little on what quo goes for these days

Quote from DonnaV:

OK how much will it cost me

 

[RichardRimes]

Quote from rdemyan:
Let me reflect a little on what quo goes for these days [/B]

got quid

 

[volatilitypimp]

Quote from nlslax:

Interesting comments re debit vs credit spreads. For the last 60 days most of my trades have been long calenders, when previously most of my trades were credit spreads. Funny thing is I've noticed the stress levels dealing with the calenders is far less than the credit spreads. Maybe it's knowing the maximum out of pocket is already spent vs trying to hold on to a credit that might be taken away.

I have roughly 4 calendars and 2 IC's on per month, and I am the exact same way. My spx ic is giving me heartburn at the moment, but my CME ic is giving me an ulcer. Whereas my calendars are curently getting better yields than otm credit spreads. Oh well, gotta mix it up.