SPX Credit Spread Trader

[Aardvark]

Quote from optioncoach:

The problem always is that the approach you outline snifss of market timing. You are going to try and time correctly each tranche of spreads you add and most times you will add a small position and the market could never come back and you are going to average in at a lower prmeium then if you simply opened the entire position.

My opinion is that more often than not you will be off on the timing and may actually reduce potential income trying to time it right. You can test it out but we need to be in a nice rangebound market where you will not run out of time to get all your positions on.

I am looking at JULY once I close off the JUNE call spreads which I need a good down day to do so. I will try today and if cleared I am going to wait for the move to 1260 or so I am expecting (hoping) for and a little IV spike to grab some way the heck OTM put spreads for JULY.

You bring up really good points...not only more directional trading but also day/weekly trading and in this volatile environment most likely not a good approach. I still need to babysit my 1245 put shorts and when the market can move so quickly...playing around with July while the June pot(puts) is close to boiling over is reckelss for sure:eek: If you do a Ft Lauderdale in the winter...I'm there... I'll skip the summer heat/humidity!

 

[dagnyt]

I still find it next to impossible to trade SPX. I entered a Jul, 10-point put spread early in the day, asking for a credit of 55 cents. Later, the natural market became 30 cents bid; 1.30 offered, and they still did NOT take my offer. Pretty unbelievable.

Mark

 

[nlslax]

Quote from dagnyt:

I still find it next to impossible to trade SPX. I entered a Jul, 10-point put spread early in the day, asking for a credit of 55 cents. Later, the natural market became 30 cents bid; 1.30 offered, and they still did NOT take my offer. Pretty unbelievable.

Mark

Agreed... F'n ridiculous.
Got filled FOTM but ~.25 from the mid.
The further OTM, the worse the fill.

C-bow has a lock on it and like the Naz and NYSE, they're not gonna change until forced to.

 

[El OchoCinco]

Yeah it certainly is an exercise in patience and smiling while getting screwed a tad..

Quote from dagnyt:

I still find it next to impossible to trade SPX. I entered a Jul, 10-point put spread early in the day, asking for a credit of 55 cents. Later, the natural market became 30 cents bid; 1.30 offered, and they still did NOT take my offer. Pretty unbelievable.

Mark

 

[skanan]

Coach,

Congratulations. I learned a lot of trading from your posts more than any books I read. There is no books teaching option trading together with risk management like this trade. I wish you success in your full-time trading career.

People said chaning career/jobs is a big stress in life as well as having a new child. I wish you manage both stress well also.

-Nick

Quote from optioncoach:

GOOD NEWS! (no not baby news, not yet).

Since you are all my online friends/family in a dysfunctional way I wanted to share my recent news. I officially gave notice and in about 6 - 8 weeks, will leave the legal profession for good and trade full-time from home and manage money. For those who think this is easy, it has taken a few years to get to this level and the real work is actual starting so we shall see

 

[Cache Landing]

Quote from rallymode:

June 129/128 debit put spreads closed for .70. Return on risk 133%.

Great trade, I was going to do the same thing but as you can see from my journal trades, I opted to go a different route. The return on risk should be comparable in the end, but it will have taken me an extra week.

 

[codyhopkins]

For those of you calculating one and two Sigma for June and July expiration on the SPX, I would be interested what number you are now applying for Vol and what results you are getting.

Thanx

Cody

 

[Heatheranderson]

Coach
did you grab any SPX puts yet.I am looking at below 1150 but they are all in 25 points spreads.

oh you are still in june positions,right.slipped my mind.

 

[ryank]

Quote from codyhopkins:

For those of you calculating one and two Sigma for June and July expiration on the SPX, I would be interested what number you are now applying for Vol and what results you are getting.

Thanx

Cody

I'm just pulling this info from TOS at the moment:

June
1 sigma = 1224/1299
2 sigma = 1190/1337

July
1 sigma = 1194/1335
2 sigma = 1130/1409
vol = 18.14%

You can also do a rough calculation by taking the ATM strangle for 1 sigma, doubling it to get 2 sigma.

 

[Crucis]

Is there a formula that could be used. I've seen a couple but nithing where you could just plug in some number and get the calculation. I'm not too good at square roots.