SPX Credit Spread Trader

1. It is 1:1.

Are you saying that there is a 1:2 diagl spread -- two short (near) and one long (back month)? You put the long in front of the shorts?

2. Greeks == great idea.

I am only looking at premium change without understanding what is behind the curtain.

I am also looking at the spread distance. Everything I have heard is one strike price away, but I did 20 ticks for the low debit just to watch and learn.
 
I'd be careful with any bullish positions here. Lotsa resistance ahead of us. We are also butting against the upper end of the breakdown channel. I think a retest of 1220 is coming shortly and perhaps 1200. We should know pretty soon, one way or the other.


spx1ex.jpg
 
The pullback begins...

Quote from optioncoach:


Feel like the market will move lower and wanted to take profits here which is nice for 24 hours. Leaving VIX Calls to possibly profit off move lower.
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Quote from rallymode:

I'd be careful with any bullish positions here. Lotsa resistance ahead of us. We are also butting against the upper end of the breakdown channel. I think a retest of 1220 is coming shortly and perhaps 1200. We should know pretty soon, one way or the other.
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If you look at just the last five days, we're in a sideways channel between 1239/40 and 1255. I'm not totally bearish on the break. If the sideway channel continues and we have a neutral or positive FOMC report, it could break upward.
 
This all depends on your GREEK outlook. In reg-t accounts, you obviously can not.

Diagonals in a traditional sense exploit VEGA (long).




Quote from cdowis:

1. It is 1:1.

Are you saying that there is a 1:2 diagl spread -- two short (near) and one long (back month)? You put the long in front of the shorts?

2. Greeks == great idea.

I am only looking at premium change without understanding what is behind the curtain.

I am also looking at the spread distance. Everything I have heard is one strike price away, but I did 20 ticks for the low debit just to watch and learn.
More...
 
If the FED news is not big enough to force a trend change higher then we will keep moving back to 1220 lows and support as seen clearer in Rally's chart.

Once we move to 1220 and VIX spikes back up again, I will slide into another ES put ratio spread for July. I think time is too short for a decent July SPX credit spread so I may pass for now.
 
Quote from optioncoach:

Politely hinting about keeping on topic lol...
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Please accept my humble apologies if my GOOG post was off topic.
:eek: I thought this was a thread about credit spreads. If single stocks are off limits ... no problem.

Anyways (banging my head against the key board) Bad Dobie, Bad Dobie!!

Tim K.
 
Quote from optioncoach:

PRECIOUSSSSSSSS
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Coach, two non credit-spread questions and I again apologize for the digression: 1) You mentioned you prop trade. When I looked around South Florida for prop traders who took on options-only traders, I was informed by almnost everyone that no one will give you capital to do options-only strategies. How did you manage to find a shop? 2) You do ZN ever as well as ES? Why or why not?
 
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