SPX Credit Spread Trader

Aardvark · May 23, 2006

wow...just took a look at the 10day overbought/oversold oscillators:eek: we haven't seen this deep a low on NDX since 9/11 and hugh dip on NYSE to boot. It is often said that a sharp move with volatility and volume is a change in either direction or rotation. Given the economy is still quite sound with unemployment low I believe this sharp decline we see which is a panic in some markets (or sun nite) is going to indicate a change in money flow...out of international markets and commodities and back into the relative security of the US markets. The US markets could follow but later this summer or fall. Just my animal instinct

rsflint · May 23, 2006

Quote from cdowis:

Where can I get historical closing prices for spx options?

Here ya go:

http://finance.yahoo.com/q/hp?s=^GSPC

Rookie Rich

El OchoCinco · May 23, 2006

Well needed another down or flat day to get filled, spread vanished on today's surge so nothing for JUNE so far

Quote from Cache Landing:

I was just thinking to myself while going over the charts that the only really safe level for the next couple months is below the 1180 support.

I had to chuckle when I looked at your post and realised that I wasn't the only one thinking it.

ChrisM · May 23, 2006

Phil,

Could you disclose what return you could realize on VIX options ?
One thing was verified positively during this correction; your choice of instrument for disaster scenario protection.
In fact interest rates were not helpful this time at all, whereas VIX jumped up nicely although deep correction is still far away from black swan scenario, in which VIX could possibly grow much more than this.

Another issue here (which might be issue of the future) is, that monitoring market in European time zone could be very effective anti-black swan protection due to growing electronic market...

ryank · May 23, 2006

A good up day for the market and nobody is taking any call spread positions?

Crucis · May 23, 2006

Open a bull call 32.5/37.5 on TIE.

Cache Landing · May 23, 2006

Quote from rallymode:

I am sticking around for the moment but i will not hold through expiration. I am closing on the first bounce. I dont like this market for bull put spreads.

Did you sieze the moment this morning or are you still hangin' on?

Cache Landing · May 23, 2006

Quote from ryank:

A good up day for the market and nobody is taking any call spread positions?

Not just yet on the bear calls. If we reach 1280 I will be selling them.

I did however, convert some of my bull puts into flies at the peak this morning (offset the rest of them). Locked in a guaranteed profit, and if we settle back down around 1250 then I will make some decent money.

ryank · May 23, 2006

Quote from Cache Landing:

Not just yet on the bear calls. If we reach 1280 I will be selling them.

I did however, convert some of my bull puts into flies at the peak this morning (offset the rest of them). Locked in a guaranteed $1.00 profit, and if we settle back down around 1250 then I will make some decent money.

I wasn't quite brave enough to pull the trigger on the 1235/1240 spreads, still paper trading this month. Probably move to a small amount of real money next month. I think the pull back these last few days have really shown me how a well placed 5 point spread can work out better under pressure than a 10 point spread.

Cache Landing · May 23, 2006

Quote from ryank:

I wasn't quite brave enough to pull the trigger on the 1235/1240 spreads, still paper trading this month. Probably move to a small amount of real money next month. I think the pull back these last few days have really shown me how a well placed 5 point spread can work out better under pressure than a 10 point spread.

I'm always brave (translated stupid) enough to pull the trigger, but this market is showing serious lack of conviction from the bulls. Also, the credits on the put side suck, so I jumped at the chance to convert this morning. Talk about timing it right. Market started down right after I got filled. That rarely happens.