SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
My vote... Do nothing. Two possible scenarios.
1) SPX continues up a bit more and you get a better credit.
2) SPX drops and you still get a better credit from the IV increase. These up days are killing the IV and making very short term credits horrible.
this is how i do it. quick and dirty method.
With regards to all the posts about bear call spreads with 1305 strikes, you guys are playing with fire in my opinion. The SPX is 1 good news away from 1280-1290 and that wont even put it half way to being overbought but i won't say more on the subject since we've had this discussion many times before.
While I don't think SPX will even get within 20-points of 1305, I will agree on the premise of the warning. It's generally not a good idea to sell a call spread after a big correction. Personally I'm waiting until we get close to the top.
Market is not doing much. are we back to normal or is market waiting for some important news?.
Maybe because my brain got used to so much action, that today seems dull.
Maybe because my brain got used to so much action, that today seems dull.
That's funny. Now +8-points is no action.
Just to bring it into perspective. +8-points early in the morning is plenty of action, but still dull compared to what happens June 13-15.
Unless we get a bad income report tomorrow, i think the market will continue its rally into the holiday. Yesterday's shakeout should provide a nice short term support. From emotional standpoint, I think yesterday was one of those capitulation days where weakest longs sold out cuz they couldnt handle it volume and price action supports this claim (good buying op) I still see SPX 1290 before 1240, discounting any bad news.
About when are you considering a bear call position? I was going to start thinking about bear puts around 1280-1285. If we get back down around 1250 without vols getting too crazy I was also thinking about bull calls there.
