SPX Credit Spread Trader

Even with all this downward action the last several days I still can't get out of my June 1380/1390 call spread for .05 (I'm way to stubborn to bump it up to .10). I put in an order late last week and still no luck (I actually forgot I made it a GTC order). At this point I'm going to just let it expire.
 
Quote from rallymode:

if we find some sort of footing here the iv will likely drop before we reverse. i dont like being long premium when its relatively more expensive as well. But the way the puts are skewed right now, i am not opening any credit spreads either.

Like your technique you mentioned earlier about closing the short and leaving the long side. That's how i get out of losers also, when the moment is right(like after todays neg CPI report) you can easily catch the swing and break even. It does introduce directional risk however but well worth it in my experience.

nice job getting out of that trade.
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I like to reverse the credit spread like that on equities more than SPX. B/A spread hurts sometimes. Like I said on my journal, I normally wouldn't leg out like that with the longs still 15-points OTM, 1 day for expiry, but today the drop was easy to anticipate. Didn't want to get greedy though, just went for B/E.

Just another point, it's usually easier to leg out of bull puts due to the IV increase as the index drops.
 
Quote from ryank:

Even with all this downward action the last several days I still can't get out of my June 1380/1390 call spread for .05 (I'm way to stubborn to bump it up to .10). I put in an order late last week and still no luck (I actually forgot I made it a GTC order). At this point I'm going to just let it expire.
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Looking at it, I would be surprised if you could get out of it for less than 0.15 right now.

Wait until the end of the day today, IV will likely drop and you might be able to get the 0.05 fill.
 
Quote from Cache Landing:

I like to reverse the credit spread like that on equities more than SPX. B/A spread hurts sometimes. Like I said on my journal, I normally wouldn't leg out like that with the longs still 15-points OTM, 1 day for expiry, but today the drop was easy to anticipate. Didn't want to get greedy though, just went for B/E.

Just another point, it's usually easier to leg out of bull puts due to the IV increase as the index drops.
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Another note, it is also easier on the narrow 5-point spreads.
 
Yeah, I'm trying to get out of some really FOTM June bear calls and am having the same issues as Ryan. Cache, I think I'll take your advice as well.

Quote from Cache Landing:

Looking at it, I would be surprised if you could get out of it for less than 0.15 right now.

Wait until the end of the day today, IV will likely drop and you might be able to get the 0.05 fill.
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I know, I know, it's super dumb to buy a call spread right after a plunge.... but, the high VIX seems to inflate the call spread premiums.

A JUN 1335/1345 is 0.70.... any thoughts?
 
Quote from Cache Landing:

I was reading back through a couple pages and came across this post. Must have missed it. I also realized that I meant 1250. That is where I see support. Of course, if we drop to 1270 during the next few days, I will be rolling my current position down/out probably to JUN 1245/1250.
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We are getting closer! Are you still thinking of going with this one? The mid is at a whopping .60 right now.

EDIT: looks like the .60 was bogus from TOS, it is now $1.10
 
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