SPX Credit Spread Trader

[El OchoCinco]

Well it I would not mind waiting until the fed effect at the end of the month especially since a downtrend could spike IV and let me grab some sweet deep OTM premiums. For now I will just let JUNE ride and when it expires I will wait for the Fed to grab July.

Quote from skdoyle1:

Do you all feel comfortable putting on July positions before the Fed speaks at the end of Jun? It seems like the market keeps on reacting like it has bi-polar disorder everytime he speaks. I'm not too sure if I want to place my bets knowing that he could send the market into a large rally or decline....comments...


sd

 

[subq]

optioncoach,

Am I correct in seeing that the 1330 x 1350 bear-call and 1195 x 1175 bull-put with the spy hedges would need a margin of ($444,875.00)?

 

[Aardvark]

Quote from skdoyle1:

Do you all feel comfortable putting on July positions before the Fed speaks at the end of Jun? It seems like the market keeps on reacting like it has bi-polar disorder everytime he speaks. I'm not too sure if I want to place my bets knowing that he could send the market into a large rally or decline....comments...


sd

I was thinking the same thing...however isn't a bi-bolar market rather perfect for an IC? that way we can worry about both ends of the market:eek: I know...I know...this is NOT an IC thread

 

[rbsanders]

Anyone trade straight put or calls or debit spreads on spy oriwm for day or swing trades

 

[Aardvark]

Quote from rbsanders:

Anyone trade straight put or calls or debit spreads on spy oriwm for day or swing trades

toe in water with weekly call debt spreads...two weeks ago with good success this week....may be not so good BTO 1265 call yesterday for 6$ looking to sell the 1280 but market so far not behaving...still thinking next couple of days are up

 

[El OchoCinco]

Yes somewhere in that ballpark because I did a large position. If you are following along on paper, scale it down to a size more in line with your own capital and risk management %.

Quote from subq:

optioncoach,

Am I correct in seeing that the 1330 x 1350 bear-call and 1195 x 1175 bull-put with the spy hedges would need a margin of ($444,875.00)?

 

[El OchoCinco]

Well I prefer a flat meandering market for the ICs. This market is a spring waiting to explode in either direction based on FED meeting at the end of the month. Makes JULY positions close to the money riskier.

My advice for JULY is look for put strikes around 1160 or 1170 if possible and ample credit for best cushions. On the call side, stay at least 10 points minimum above the recent highs of 1326 for best cushion to the upside IMHO.

Quote from Aardvark:

I was thinking the same thing...however isn't a bi-bolar market rather perfect for an IC? that way we can worry about both ends of the market:eek: I know...I know...this is NOT an IC thread

 

[burrben]

I agree completely. Would there be a good way to play the fed announcement with spreads? Straddles right before the announcement?

Quote from optioncoach:

Well it I would not mind waiting until the fed effect at the end of the month especially since a downtrend could spike IV and let me grab some sweet deep OTM premiums. For now I will just let JUNE ride and when it expires I will wait for the Fed to grab July.

 

[ryank]

Quote from rallymode:

opened 1235/1240 bull put spreads for $1.5 credit.

Very nice profit in a short time frame on this one. Still holding on?

 

[nlslax]

Quote from optioncoach:


My advice for JULY is look for put strikes around 1160 or 1170 if possible and ample credit for best cushions.

Coach - What is your definition of "ample" in this scenario?