SPX Credit Spread Trader

Ahhh I guess ample is in the eye of the beholder. For me a minimum of 2% net profit on margin would be a guide for me with respect to ample. As for actual premium iniital cut-off is anything below $0.20 for starters for a new first entry position on 5 or 10 point spreads.

Sure there are exceptions but that seems to a general description of my pattern.

Quote from nlslax:

Coach - What is your definition of "ample" in this scenario?
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Well do not get too excited about the pulllback as it so far appears to be text book pulback after the breakout. I actually shorted an ES contract at 1270 looking for the market to continue on its pattern unless we get some news to break us out higher (which will not come until next weeks CPI/PPI. If the pattern projects out we are going to 1200 in a few weeks, all but guaranteed if reaction is negative to FED meeting at end of month.

For rally, today might be a good day to enter 1290/1300 bear call spreads :D

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Quote from optioncoach:

Ahhh I guess ample is in the eye of the beholder. For me a minimum of 2% net profit on margin would be a guide for me with respect to ample. As for actual premium iniital cut-off is anything below $0.20 for starters for a new first entry position on 5 or 10 point spreads.

Sure there are exceptions but that seems to a general description of my pattern.
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Thanks, I'll keep that rule of thumb in mind. In at .70 on the 7/1165's (15's).

Might have pulled the trigger too soon. Happens when you get older...:p
 
Quote from ryank:

Very nice profit in a short time frame on this one. Still holding on?
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certainly, waiting on a bounce and/or volty collapse. Still too much fat in it given we only have 5.5 trading days left.
 
Quote from optioncoach:



For rally, today might be a good day to enter 1290/1300 bear call spreads :D
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1290 short strike? Are you kidding me, we were there 3 days ago and might be there again in another 3.

Come on coach, you know i am much more risk averse than that :)

Nice chart analysis by the way, though i think we drift higher rather than lower on no news. I guess we will never know who is right since we DO have news coming out soon :D
 
I think i will join coach with a chart of mine. With June almost over, it's time we start looking at July positions. For those interested, here is what i will be basing my july positions on. We are now in a trading range between 1245-1290. I dont know whether we stay here or not since i dont know what news is going to hit us but short of any big surprises as we stand today i will be looking to open july bull put positions near 1240-1245 with a short strike at 1210 or 1200(with some help from the vix) and bear call positions at 1300 or so with a short at/above 1325 if possible. Again, just my opinion.

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If anybody is looking to enter positions around 45 days out and close around 15 now is the time. My concern right now is the 6/14 CPI data and the 6/29 Fed meeting so I'm holding off, at least until the CPI data.
 
No need to rush into something with so much increased uncertainy. next two weeks could take us much lower as my charts indicate as of today or some good news could have us back over 1300 and the past highs. Once the news is out and the move happens, you can get in at a better situation.
 
I believe the saying, "Only the penitent man will pass..." has some bearing on our July position initiations....

skd


Quote from optioncoach:

No need to rush into something with so much increased uncertainy. next two weeks could take us much lower as my charts indicate as of today or some good news could have us back over 1300 and the past highs. Once the news is out and the move happens, you can get in at a better situation.
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Alert, Alert,

TOS chat today on how SET is calculated. With all the questions posted monthly seems like alot of our subscribers would be interested in this one.
 
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