SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Gonna let my JUNE SPX Put spreads run. If we dig a little higher I may go add some call spreads but I would not want to be below 1320 for my own comfort level. Doubt I could get much credit there but let's see how far this bump up will take us 
The way i trade the SPX differs from the way you trade it. I only do SPX credit spreads in my retirement account, i risk around 3-6% per position. It is a conservative approach compared to the way i trade other instruments, and i wait for perfect entries. I also enter aginst the trend 90% of the time i.e. short spx when it was breaking out and go long when it was breaking down. I would open another bear call spread at around 1320 or so. Now if this is the beginning of a bear trend i may never see 1320. If that is true then i will revise my entry method accordingly but as of right now i dont have enough information.
I do agree that once we reach 1280-1290 it will be a good short opportunity which is where i will begin scaling into some more aggressive bearish trades.
I would've responded, but I really have no opinion on Enron. As far as the market is concerned, I don't think most will notice.
Quote from Cache Landing:
I would've responded, but I really have no opinion on Enron. As far as the market is concerned, I don't think most will notice.
In the larger scheme of things I do think. This verdict is very important. I agree with the person who said this is more important to investor confidence than Sar-Ox. At least for me it is. I thought Martha's sentance totally bogus but as an investor in US public companies I do feel these two ran a company into the ground and ruined the lives of many and need to pay just as any crook who goes into your home and robs you blind. If they had gotten off while Fastow sits in jail I honestly would have to re-evaluate if I want to ever invest in companies again.
ps..never owned Enron but did Worldcom and Global Crossings and how can an investor do due dilligence when the ex's are completely crooked...and in cahoots with analysists
OK let me rephrase, If we get to 1280-1285 I'm going to start thinking about ITM credit spreads. LOL
Although nobody likes to lose money, I'm not too worried about it. With other spreads I have open and another I have closed I am only down a few hundred for June expiration at this point. If I can find a good set-up for another spread tomorrow I may take a stab at a fill and see what happens.
We all hear how the market likes to climb the wall of worry, and those of you that follow this and other Wall Street adages might be interested in this, even as the DJIA rallies 76 points today and the SPX trades 10 pts higher.
The SPX is at or about 1268
The skew of volatility is dramatic in the puts, as the June 1125 puts, more than 143 points out-the-money, are trading for $1.00 apiece. Meanwhile the June 1315 calls are also trading for $1.00, even though they are just 47 points out-the-money.
That means investors want $1 for a put that is 11 percent out-the-money, but will sell you the right to the upside above 1315, a move of just 3.7 percent for that same dollar. Hmmm...
The SPX is at or about 1268
The skew of volatility is dramatic in the puts, as the June 1125 puts, more than 143 points out-the-money, are trading for $1.00 apiece. Meanwhile the June 1315 calls are also trading for $1.00, even though they are just 47 points out-the-money.
That means investors want $1 for a put that is 11 percent out-the-money, but will sell you the right to the upside above 1315, a move of just 3.7 percent for that same dollar. Hmmm...