SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
I've been unable to get to a computer for a few days. Just wanted to update and post that I was able to sell my July 1370 call for $0.05. So the cost to leg out of this spread was $0.00. I paid $0.05 to buy back the July 1355 and got $0.05 selling the July 1370. Of course there were commission costs.
I have generally been quite successful at legging out of spreads when they are near worthless (I generally do this to free up margin, but very occassionally just to make sure I close the month out profitably). I have a much harder time actually closing the spread as a single order.
July is over. Results are 4.7% return on margin.
I have generally been quite successful at legging out of spreads when they are near worthless (I generally do this to free up margin, but very occassionally just to make sure I close the month out profitably). I have a much harder time actually closing the spread as a single order.
July is over. Results are 4.7% return on margin.
Nope. But I am putting the bear calls on early. These particular bear calls (July SPX 1355/1370) were filled on June 1st. Bear calls have been good the last couple of months and I haven't sweat one bit. It's so nice not having to worry about geopolitical events or a potential black swan (Heather's quote on bulls/bears was great). But....., the 4th quarter is usually a bitch for bear calls, which is all I trade now. I'm hoping you can teach me the art of legging in on the calls. 
Also, Murray's a pretty good salesman. He's peaking my interest in the diagonals. Apropos, why is the calendar spread forum so dead? Would be nice to see a double diagonal forum.
Also, Murray's a pretty good salesman. He's peaking my interest in the diagonals. Apropos, why is the calendar spread forum so dead? Would be nice to see a double diagonal forum.
Quote from rdemyan:
Nope. But I am putting the bear calls on early. These particular bear calls (July SPX 1355/1370) were filled on June 1st. Bear calls have been good the last couple of months and I haven't sweat one bit. It's so nice not having to worry about geopolitical events or a potential black swan (Heather's quote on bulls/bears was great). But....., the 4th quarter is usually a bitch for bear calls, which is all I trade now. I'm hoping you can teach me the art of legging in on the calls.
My "legs" haven't been working too well lately!
edit. perhaps the vol's have been a little high for cal's however I'm now doing an OIH call cal...might just have to restart that....
Quote from Aardvark:
My "legs" haven't been working too well lately!
edit. perhaps the vol's have been a little high for cal's however I'm now doing an OIH call cal...might just have to restart that....
I looked at doing cals on OIH a few days ago. I can't figure OIH out. It goes down when oil goes up, and the vols are down when I would think they would be up. I trade RUT and RMN in cals and do fine. Go figure. Good luck with your trade.
Hi Neal.. a good friend in the oil/gas industry used to say how cyclical that industry was. OIH actually doesn't follow oil because as oil goes up it gets more expensive for the oil "services" industry. I had a put cal on the OIH and it has done very well so I just figured that perhaps NOW is a good time to go the other way. Have no idea if it will work.
Murray, I'm intrigued by the diagonals as, like you said, they benefit from rising vols. What criterion do you use to set them up?
Here is an example for discussion, what are your thoughts? All are welcome.
sell aug 1190 put: 9.6
buy sep 1150 put: 9.4
This is for a slight credit but I'm not looking for a large one. In the pic I've got the exit at the short strike.
Here is an example for discussion, what are your thoughts? All are welcome.
sell aug 1190 put: 9.6
buy sep 1150 put: 9.4
This is for a slight credit but I'm not looking for a large one. In the pic I've got the exit at the short strike.