SPX Credit Spread Trader

Okay, so back to actually trading. The SPX is up +9.50 before the fed, how does the 1295/1300 for .85mid or 1295/1305 for 1.40mid sound?
What's the general consensus among the talking heads? .25 increase and then we fall slowly?

Anyway, is anyone going to put on a position today BEFORE the announcement, or is everyone waiting for the announcement and the trading the fade?

Peace and let's get back to making some $$.
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I am tempted to go for it. There is some good premium out there and just how much will the Fed news effect things at this poin?
 
Quote from blure2:

I am tempted to go for it. There is some good premium out there and just how much will the Fed news effect things at this poin?
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Where do you see that good premium?
 
While I certainly agree with coach...if I were in a different position I would also be fat and happy sitting on the sidelines:p
HOWEVER I'm not.... so have been scalping on the call side. Most recently 2/27 BTO 1310's for .65 and this am STO 1/2 # of contracts at 1285 for 4.30..still drumming up cash on the call side.
 
I think I agree, but it would be so sweet to put on a call spread being up 10pts and then have a slow downward reaction from the fed announcement. If you had to place a bet, would you go long or short on the fed announcement? Personally I feel there is a stronger negative bias, but I've been wrong many times before.


Quote from optioncoach:

I think putting on a position before the Fed announcement is too much of a gamble since we have no clue how the market is going to react to whatever Bukake says. We are up strongly this morning on anticipation but basically we have gone sideways the last week or so.

Gonna wait and see what happens and if the move is strong enough then look for July. If time is too short then I miss July and look for August. I do not mind investing in cash while the market plays out which is better than rushing into a position just because you do not want to let July go by without a position.

So better to wait and see...
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This is my first chance to check the market today and I am surprised to see we are up as much as we are with the annoucement coming in about 15 minutes. Did the Money Honey have dinner with Ben last night and he spilled the beans?:D
 
I closed out my xeo bull put for 80% of profit and sold 100 1300/1305 bear call spreads for .85. Significant resistant ahead in 1278-1283 level. We may gap up tomorrow and will watch closely how it reacts to these levels. If breaks down will take some profits and if blows through will close out half and use some of my xeo cushion to put on some protection.
 
Sold a SPX 1195/1205 Bull Put Spread @ .80 before the fed announcement and tried to buy it back for .50 after the announcement but there were not takers even though the b/a mid was less than .50. Will try to buy back for .40 tomorrow on any uptick.
 
Half/half #1 and #4

BTC 1/2 July1225 straddle 45.9

STO @ 61.4, 15.5 profit

BTO Aug1225 straddle 63.0 (same # as July str still holding)

Close today:

July 1225str 55.0/58.9

Aug 1225str 67.4/71.4


Quote from LeonPhelps:

SPX Jul1225 straddle sold for 61.4 now 43.3b/46.7a

Options:

1) Buy back for 45.9
Return=8.4% on margin, 2.8% on 3X margin
(not bad for 2 weeks)

2) Hold

3) Buy wings

4) Convert to double diag (I kind of like this one)
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