SPX Credit Spread Trader

Quote from optioncoach:

Stress is in the eye of the beholder :D
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Its tough not to stress when the SPX pinches through support like knife through butter and cant even get a dead cat bounce going. Market like this is what takes alot of premium sellers out for good. This thread sure is quiet lately.
 
Quote from LeonPhelps:

Anybody got any lube I can borrow? I'm getting kindof chapped.
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I know it doesnt make you feel better but i personally know quite a few option traders who are taking quite a beating this month. Just look around this board and you will see plenty more. This whole FED thing has caught alot of bulls on the wrong side of the market. Many bets on a technical rally are now failing miserably and you can see the panic in the air. Hell vix is at 23+ :eek:

It certainly looks like it cant get better and can only get worse. Good time to be bullish? I'd say yes but not before june options expire.
 
The God of TA has abandoned all ye who entered the cult of Support/Resistance Overbought/Oversold indicators. It's mass suicide time. Hand out the Kool-aid :D

Those who rolled last month's PUT credit spreads to this month....are now even further in the doo-da! Will ye be tempted to do the same again this month?....

Dead cat bounce coming along...

Good luck all those in a slightly sticky situation! It's only money :)


Quote from rallymode:

Its tough not to stress when the SPX pinches through support like knife through butter and cant even get a dead cat bounce going. Market like this is what takes alot of premium sellers out for good. This thread sure is quiet lately.
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I closed out by JUN 1200/1210 spread this morning taking a $259 loss. SPX hit 1222 about that time. I was glad the loss was only $259. No profit this month---last month neither.
 
Quote from LeonPhelps:

Yeah I wonder how these guys are doing:

http://www.ansbacherusa.com/PageOne.html

http://www.excelfutures.com/ace_disclosure_doc.htm

http://www.zenith-resources.com/index2.htm

http://www.ljmfund.com/
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A quote from the first site:



AIM was founded with the basic principle that option trading is not a sum zero game between the buyer and the writer, as it is often described in books and mathematical formulae. Rather, it is our conclusion that because option writers possess the capital needed to write options, and because they are willing to put that capital at risk, they receive compensation for this in the form of making a worthwhile profit.



No need to read any further. Tells me all i need to know know. :D
 
Quote from rallymode:

I know it doesnt make you feel better but i personally know quite a few option traders who are taking quite a beating this month. Just look around this board and you will see plenty more. This whole FED thing has caught alot of bulls on the wrong side of the market. Many bets on a technical rally are now failing miserably and you can see the panic in the air. Hell vix is at 23+ :eek:

It certainly looks like it cant get better and can only get worse. Good time to be bullish? I'd say yes but not before june options expire.
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why would option's pros short vols at the lower deciles in the first place? I really don't get it.
 
Quote from IV_Trader:

why would option's pros short vols at the lower deciles in the first place? I really don't get it.
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Not many expected the volty to stay high. With any premium selling strategy the transition from a low vol to high vol environment is quite painful. Net long greeks strategies are doing quite well just about now. Good time for many to revisit that old saying about diversification. :)
 
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