SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Since I`ve been trading for living I use little different approach to S&P, which might be wrong but it works and I personally believe it`s true.
I mean sentiment is primary and reports are secondary. There is no way to quantify reports yet, but through years of trading you may see that bad and good ones come in waves.
Conclusion is, that bad report can`t do much. If whole sentiment is ready to go again, there will be no significant reaction.
Just my 2cents - not trying to change anybody`s opinion.
Quote from Aardvark:
well I missed all the non action...although spx seems to be having an identity crisis...I did get filled on my June 1250 puts so will be hoping to sell a 5 point and a 10 point spread sometime next week during the volitile exp weekI'm thinking of keeping some of the 1250's as a ratio long...but not as many as I did this month
posted on the 10th
What a nutty day:eek: I guess I will update my June position in the FWIW category or how to turn a perfectly wonderful position into a mess
5/10 BTO 1 (lot) June 1250 P debt@2.60
BTO 1 (lot) June 1245 P debt@ 2.50
had I held...woo hoo...but nooooooooo
5/11 STO 2(lots) June 1245 credit@ 4.10 (essentially creating a debt spread) and chashing half the nice gain....this was fine had I been patient...but noooooooooooo
5/15 STO 1 (lot) cr 1225/1245 Put spread for cr. 1.90...too early
lets just compound this by selling another one on
5/17 STO 1 (lot) 1225/1240 cr. 1.60
I really thought I could do something creative with this mess..and wasn't too worried about the decline because I at least was long a lot of 1250's as a bit of a cushion.However when early today mkt was down I just gave up on trying to make something out of it so I STC 1 (lot) of 1250/1240 puts..cr. 2.70
what I ended up with was 2 (lots) of 1225/1245 put credit spreads for a total credit of 4.65 and anyone and his mother who wanted to take the risk could have sold that this AM!!!!!
Japanese have a word for this..."me cha ku cha" sigh...so I guess right now Cache L and I are the ones with our necks out the most.... :eek: I wish I could say I learned something..the only thing I'm learning is how hard it is to create positive expectancy
