SPX Credit Spread Trader

I know we are due for a bounce so I did enter this trade and it will be used as a magnet. If the market tends to go towards my short within the ne x two days, I will close it and then open my June Bull Put.

Rally,

1275/1265@1.80 was for may so I can complete my iron condor:

1340/1350; 1275/1265.

I had an order for 1250/1240 June which I cancel because I want more down days before opening Bull PUT



Quote from rallymode:

That is a great trade. If i get my desired entry i will most likely go closer to the market this time if not ATM to reduce risk. You say you will most likely close it soon so i guess you are looking to just catch a bounce?
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For June, I have 1375/1385@1.00. I also have RUT 820/830@1.50. They are both worth 0.20, 0.15 cents respectively. That's what is good when using TA to enter trade; You can enter safe trade and at the same time get very good premium.

I am lloking at completing my RUT condor ASAP as we are due for bounce. I am going to wait for Friday before deciding about what to do with SPX Bull Put but I am looking at 1250/1240. Statistically, Technically, I think 1250 is safe for June .

Based on TA it's a good time to buy some SPY calls or Bull Call as a bounce is imminent this week.


Quote from scienter:

Nice trade today... Beautifully done! Put a little too much emphasis on the RSI this month for the bull put and didn't wait for my stochastic confirmation.

For May I have:

1340/45 @ .55
1350/55 @ .40

1280/70 @ .5 (bought at 1310)

129/128 debit spread for a hedge on the 1280...not ideal as I would like to give both the hedge and the spread chance to finish ITM. However given the action on Friday was left little options...


For JUN I am positioned with a call spread at 1375/1380 @ .5....got in with stoch. confirmation right b/f the sell-off. Looking now for a Jun 1240/35 to complete the IC, for .5 or better. Will also keep a close eye on this bounce...if it's weak, may wait for the second wave down b/f placing the bull put.

And your time?
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Rally, the lure of lost profit can be very, very strong.

How did you learn to take a missed opportunity over a marginal trade? Can you suggest a mechanical set ot steps (or thought process) which would make this mindset easier to implement?


Quote from rallymode:

... I'd take a missed opportunity over lost cash any day and thats on high r/r positions. Market opportunities will always be there, your cash will NOT.
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Quote from andysmith:

Rally, the lure of lost profit can be very, very strong.

How did you learn to take a missed opportunity over a marginal trade? Can you suggest a mechanical set ot steps (or thought process) which would make this mindset easier to implement?
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Andy, i dont see missed opportunities as lost profits. How can they be profits when i wasnt even in the trade? Lost profit in my book is when you have profitable position and let it go against you. When you stay out of a trade thats just it. No more no less. There is always reason that i decide to stay out when i do and if it turns out that i was wrong this time around then so be it as i know i was doing the right thing from a long term perspective with regards to the particular trade at hand. None of my trades are random. I know what i just said means nothing to you but i dont know how else to put it.

I do agree that it is very hard to stay away when your gut is telling you to jump in. As humans we like to take risks and many even thrive on them.

What is the hardest part, in my opinion, is recognizing when/what is a relatively undesirable time/trade. Having said that, i cannot suggest a mechanical all-in-one approach that will help you distinguish whats what other than to say that after a period of time using the same stuff over and over you start to get a feel of whats bad and whats not in relative terms of course. I think you get my point.

So it all comes down to still being in the game by the time you develop that sense for lack of a better word. Usually by that time you also have a pretty good sense of direction and know how to manage your risk without much effort. Thats when your moving to +expectancy in your trades and can start varying those risks accordingly. I hope that was helpful.
 
Quote from rallymode:

Not a 1270 short, i am waiting on SPX to go to 1270 to open the position, dont know whether i will go ATM or OTM yet.
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If we make it down to 1270 I think I'll only be slightly OTM, say 1260 or so.
 
Rallymode I read your answer to Andy and I think he and all of us understand what you are saying. However what is the difference between "gut" feel and trusting your "sense"? Isn't discretionary trading the ability to "sense" something in the market that allows you to change or initiate a position you might not otherwise put on or do using only mechanical means?

And Coach I'm REALLY sorry I missed your show:( I just didn't have time to figure out why I'm not getting audio. My sig other was fooling with my computer:mad:
 
Quote from simplyloge:

Coach,

Enjoyed your show last night. Have not been doing enough calendars....now you have me thinking about them again.
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Is there a way for us to go in and hear the archived shows?
 
That was you listening?? I knew it was somebody :)

Rally raises a point in a previous post that I actually covered in my radio show from the week before. With respect to a missed opportunity in not getting into a spread, does anyone remember my Boiler Room (the movie) analogy about investment choices and a security position v. cash? Who was the other person listening :D
 
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