SPX Credit Spread Trader

Quote from Aardvark:

ryank did you put on a put spread today?
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Not yet, I'm looking at getting out of a painful put spread before adding any more downward exposure :(. My June 1230/1240 put spread was put on at exactly the wrong time by looking at the chart (we were still over 1300 at the time) needs to be addressed first. I was looking for the 200ma to hold but doesn't look like it will now. I do have a partial SPY spread that is helping offset the pain but I don't want to be around when the PCE number comes out Friday at this point. I'm with Rallymode, good news might be bad and bad news might be bad so I am going to cut my loss short.

Of course the market may just shake everbody out that was holding onto the 200ma and then run back up once it has scared everyone into taking their losses :p me included.
 
Just a price gap that needed to be filled...it has now been filled so we will see if we rally from here to close above 200SMA. Otherwise.....look out below! :D

Quote from ryank:

I'm not familiar with futures speak, what do you mean by this?
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rally, thanks.

Quote from rallymode:

Andy,

if you havent read any of cottle's books i highly recommend you do. You will get a great understanding of how to build positions and how to adjust them and when it makes sense to.

Bottom line is, adjustment is better than a simple offset ONLY in those cases where the new position completely aligns with your opinion of the market or when you get better pricing on a lock with the second leg than you would when you offset(which is hardly ever the case). Often traders have the illusion that because they leg into a position when the market moves in their direction they have a better trade. You really have to make sure you would open the position you are trying to adjust to even if you didnt have the original leg.

Example, you buy a bull call spread. The market moves in your direction and you decide to turn it into a FLY instead of offsetting. You dont think the market will churn but you do it anyway cuz now you have a free fly. This is an example of when not to adjust. Remember, you took directional risk on your original vertical which you didnt get compensated for. To make money now you have to be right twice. you really must not look at the FLY as a free one to make a clear choice whether its good to adjust or not.

I hope that helps.
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I feel your pain. i sold the 1215-1230 for 0.85 when spx was 1295.

now 40-50pts lower, i was able to make some moves.

I bought back 1/2 the 30's @9.3 ~1262
I sold 1/2 15's @ 8.4 ~ 1255

I went long on a batch of 1160's @4 ~1251

I sold the other 1/2 of the 15's @10 ~1250


Now I am looking for a bit of a bump to try to buy back
the remaining 1230's. maybe for 11-12 (hopefully):eek:
 
Okay. From the bear-call only guy, here's the trade I was filled on today:

June SPX 1320/1335 filled at $0.60

Relatively high VIX helped with the premium, the short is currently 70 points removed from the SPX and there is just about 3 weeks left till expiration. Only a partial position as I don't want to commit too much money in this crazy environment.

Have done well on the way down with my bear calls, but even the pro analysts that I follow are surprised that we have come down this far.

I have no bull put exposure at all this month. :)
 
All right, from now on I will not go to the grocery store on a down day! Every time I go in that darn store I walk by the wine aisle and they have Black Swan wine sitting right in front. It freaks me out every time! :mad:
 
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