SPX Credit Spread Trader

while this thread probably will not hold at 1246 pages (grins) I still think there is a good chance of support holding for th sp in the 1240s.
 
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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Looks like you're right Coach. The SPX seems to be breaking lower today. Good for selling some PUTS due to juicy VOLs. Im looking at the JUL 1165/1150 PUTS (Thats as low as it goes in July in OX) but a little gun shy. SPX is moving quite fast the past week or so. Yesterday it was 1270 and now it back near 1245 recent lows. Now back to my procrastinating :D

My 2 cents ? SPX has already dropped from 1325 high in May and is now around 1247. Around 78 pts and 5.89% drop. From here to 1165 is another 82 pts and 6.58%. Should be quite safe :confused: From 1325 to 1165 is 160 and 12.08%. Just some number to ponder.
 
I have a credit spread SPX 1225/1210. Converting into B-FLY seems to be expensive. 1240 - 1225/1210. I can roll it higher . But I am not sure if I can get filled faster. Any ideas.
 
Quote from scoobie27:

Looks like you're right Coach. The SPX seems to be breaking lower today. Good for selling some PUTS due to juicy VOLs. Im looking at the JUL 1165/1150 PUTS (Thats as low as it goes in July in OX) but a little gun shy. SPX is moving quite fast the past week or so. Yesterday it was 1270 and now it back near 1245 recent lows. Now back to my procrastinating :D

My 2 cents ? SPX has already dropped from 1325 high in May and is now around 1247. Around 78 pts and 5.89% drop. From here to 1165 is another 82 pts and 6.58%. Should be quite safe :confused: From 1325 to 1165 is 160 and 12.08%. Just some number to ponder.
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I wouldn't be selling bull puts right now at any strikes. Too much uncertainty. Besides that, the credits for spreads on the put side are horrible.
 
Interesting day today, i see so much panic its making my monitor shake. I think a bounce is imminent in my opinion although it may not start until we drop another 10 or so points to shake out the last of the weak. Let's see what this afternoon brings. If you are already in an position, i'd wait for the bounce, though if its a wide spread you may not have that luxury. I hope you guys have/had you hedges in place :)
 
Quote from Cache Landing:

Besides that, the credits for spreads on the put side are horrible.
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hey cache,

credits are actually very sweet with the vix at 20 but its the 6 weeks to expiration that concerns me.
 
Quote from Cache Landing:

I wouldn't be selling bull puts right now at any strikes. Too much uncertainty. Besides that, the credits for spreads on the put side are horrible.
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Thanks for the tip Cache. I figure as much. You say PUT credits isnt good but this quick drops should increase vols and hence the premium right ?

Rally, Im still procrastinating and havent sold my 15 wide puts yet but looks juicy. Worried if I wait SPX might pop back up and I'll go damn... should have sold :D But who knows..

My short strike is normally between Rally/Cache distance and Coach's. But this time just felt like selling FOTM as I thought the index is unlikely to fall 12.08% from the 1325 highs in roughly in the period till July. Just my rough analysis :)
 
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