SPX Credit Spread Trader

Donna,

I felt so bored this morning that I decided to jump in your trade with you.

I am sitting on 100% cash. So I decided to do 10 SPX 1340/1350 @1.50 or 15%.

I am testing the water and next week I will see If I can get a little bit more premium.

I shouldn't be at less than 1350 but I used just a little of my capital.

We shall see
 
I dont see why you guys like the oex so much. I agree with what momoney said about the existence of a very small window where it makes any sense to go that route over the SPX spread.

Due to a better strike availability of the SPX options the majority of the times you can pick exactly what you are looking for at the credit you are seeking whether you wanna go ATM, OTM or FOTM. I dont see that with the oex.
 
To balance that suggestion, I personally could not advocate putting on an IC 2 or 3 days before expiration.

The risk/reward is not attractive - likely to be in the region 20:1 or worse.

It is a pure binary bet with very low reward and not even great probabilities to compensate.

One only needs to look back to Jan '06 expiration to witness a 10 point drop in the XEO/OEX on expiration day.

Whatever makes you money though!

MoMoney.

Quote from piccon:

I found out that OEX needs to be traded at Resistance and Support in order to get good premium and be safe at the same time. IC on OEX is not that smart. Enter your call side at overbought and be patient because the market will come back down one way or another; enter your Bull Put at Oversold condition.

This way you will always make money in OEX. That's the way I traded it.

Sometimes I will wait 2 or 3 days before expiration and put and IC completely. Ex: market at 596, I will try to do 590/585 and 600/605. But just for 2 or 3 days before expiration
More...
 
If you play at the right time for the right premium, it's wort trying.

OEX gets you faster fill than SPX. JMHO

Quote from rallymode:

I dont see why you guys like the oex so much. I agree with what momoney said about the existence of a very small window where it makes any sense to go that route over the SPX spread.

Due to a better strike availability of the SPX options the majority of the times you can pick exactly what you are looking for at the credit you are seeking whether you wanna go ATM, OTM or FOTM. I dont see that with the oex.
More...
 
Quote from piccon:

Donna,

I felt so bored this morning that I decided to jump in your trade with you.

I am sitting on 100% cash. So I decided to do 10 SPX 1340/1350 @1.50 or 15%.

I am testing the water and next week I will see If I can get a little bit more premium.

I shouldn't be at less than 1350 but I used just a little of my capital.

We shall see
More...

did you get it? I'm showing mid at 1.20...if you do...:D wow
 
Quote from piccon:

If you play at the right time for the right premium, it's wort trying.

OEX gets you faster fill than SPX. JMHO
More...

Can you get it off at 1:1? If not, then it's probably not worth discussing.
 
Mo,
The IC is placed Wednesday afternoon and it's a directional play and you are ready to get out at anytime of the tsrike that's being threated. 10% is not impossible in a trade like this.

Quote from momoneythansens:

To balance that suggestion, I personally could not advocate putting on an IC 2 or 3 days before expiration.

The risk/reward is not attractive - likely to be in the region 20:1 or worse.

It is a pure binary bet with very low reward and not even great probabilities to compensate.

One only needs to look back to Jan '06 expiration to witness a 10 point drop in the XEO/OEX on expiration day.

Whatever makes you money though!

MoMoney.
More...
 
Quote from piccon:

Mo,
The IC is placed Wednesday afternoon and it's a directional play and you are ready to get out at anytime of the tsrike that's being threated. 10% is not impossible in a trade like this.
More...

Risk three to make two... with a 50/50 prob. Hmmm.
 
You must log in or register to reply here.
Back
Top