SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Well it has been kind of busy the last few days but the only trades I put on really was to short the EURO at 1.2755 (futures price) and the Pound. Pound was stopped out but the EURO fell quite nicely to 1.2700.
Today on the reversal from the pop up in the ES I shorted 3 ES at 1246.75. Covered one at one support level of 1244.50 and still holding the other 2 at 1240.75 current price. Next support is somewhere around 1235 intraday so gonna hold....
Gonna start looking at adjustments to my 1210/1220 ES put spread today.
Today on the reversal from the pop up in the ES I shorted 3 ES at 1246.75. Covered one at one support level of 1244.50 and still holding the other 2 at 1240.75 current price. Next support is somewhere around 1235 intraday so gonna hold....
Gonna start looking at adjustments to my 1210/1220 ES put spread today.
Just wanted to let everyone know of a potential adjustment I am mulling over for my 1220/1210 ES put spread. Remember I sold 300 at .55 credit.
The position is:
+ 300 ES 1210 Puts
- 300 ES 1220 Puts
The adjustment would be to sell a put ratio spread which would convert my position above into a further OTM put ratio spread as follows:
1. Buy 300 ES 1220 Puts @ 7.00 (current prices)
2. Sell 600 ES 1200 Puts @ 3.60
Net credit = .20 or $3,000.
New resulting position =
Long 300 ES 1210 Puts
Short 600 ES 1200 Puts
$3,000 credit plus original $5k plus credit minus commissions.
New breakeven point at expiration is 1190 as opposed to 1220 or so. So 30 more points of room for the next week.
Cons of course are addition of naked ES put position which will have to be monitored but long puts of ratio spread will help to reduce losses on initial moves. I also still have my 5 1250 Puts and 1265/1255 bear put spread.
The position is:
+ 300 ES 1210 Puts
- 300 ES 1220 Puts
The adjustment would be to sell a put ratio spread which would convert my position above into a further OTM put ratio spread as follows:
1. Buy 300 ES 1220 Puts @ 7.00 (current prices)
2. Sell 600 ES 1200 Puts @ 3.60
Net credit = .20 or $3,000.
New resulting position =
Long 300 ES 1210 Puts
Short 600 ES 1200 Puts
$3,000 credit plus original $5k plus credit minus commissions.
New breakeven point at expiration is 1190 as opposed to 1220 or so. So 30 more points of room for the next week.
Cons of course are addition of naked ES put position which will have to be monitored but long puts of ratio spread will help to reduce losses on initial moves. I also still have my 5 1250 Puts and 1265/1255 bear put spread.
ES Credit Spread Update
Rolled credit spread into slightly further OTM put ratio spread and covered most of my new short of ES at 1246.75 for some profit. Timed it when ES hit 1235 pivot point support as I expect (right or wrong) selling pressure to subside and although we will not be positive for the day I think the market needs a rest and will want to be flat before the weekend to an extent.
7/6/06
Sold 300 July ES 1220/1210 Put Spreads @ $0.55
Credit = $8,250
Risk at Expiration = $141,750
Return = 5.8%
7/7/06
Bought 5 ES JULY 1265 Puts @ 9.25 for $2,312.50
NEW NET CREDIT = $5,937.50
7/13/06
Sold 5 ES July 1255 Puts @ 11.25 for $2,812.50 (Roll above hedge into bear put spread)
New Partial Hedge Position:
1265/1255 Bear Put Spread for net credit of 2.00 or $500.
Bought 5 ES July 1250 Puts @ 9.50 for $2,375
NEW NET CREDIT = $6,375 (gross of course)
Short 3 ES Contracts @ 1256.25
EDIT: COVERED @ 1261.75for loss of $825.00
7/14/06
Bought 300 ES July 1220 Puts @ 8.25
Sold 600 ES July 1200 Puts @ 4.20
Net credit = .15 or $2,250
RESULT = 300*600 1210/1200 Put Ratio Spread
New Breakeven is at 1190. OCT ES low was 1200 so I have the 1229 and 1200 low previous lows for possible support areas for the next 4 days. I have no problem with ES settling at 1200 for JULY expiration
.
Shorted 3 ES contracts at 1246.75 and covered at different prices for profit of $850.00
Still have long put partial hedges in place.
Rolled credit spread into slightly further OTM put ratio spread and covered most of my new short of ES at 1246.75 for some profit. Timed it when ES hit 1235 pivot point support as I expect (right or wrong) selling pressure to subside and although we will not be positive for the day I think the market needs a rest and will want to be flat before the weekend to an extent.
7/6/06
Sold 300 July ES 1220/1210 Put Spreads @ $0.55
Credit = $8,250
Risk at Expiration = $141,750
Return = 5.8%
7/7/06
Bought 5 ES JULY 1265 Puts @ 9.25 for $2,312.50
NEW NET CREDIT = $5,937.50
7/13/06
Sold 5 ES July 1255 Puts @ 11.25 for $2,812.50 (Roll above hedge into bear put spread)
New Partial Hedge Position:
1265/1255 Bear Put Spread for net credit of 2.00 or $500.
Bought 5 ES July 1250 Puts @ 9.50 for $2,375
NEW NET CREDIT = $6,375 (gross of course)
Short 3 ES Contracts @ 1256.25
EDIT: COVERED @ 1261.75for loss of $825.00
7/14/06
Bought 300 ES July 1220 Puts @ 8.25
Sold 600 ES July 1200 Puts @ 4.20
Net credit = .15 or $2,250
RESULT = 300*600 1210/1200 Put Ratio Spread
New Breakeven is at 1190. OCT ES low was 1200 so I have the 1229 and 1200 low previous lows for possible support areas for the next 4 days. I have no problem with ES settling at 1200 for JULY expiration
.Shorted 3 ES contracts at 1246.75 and covered at different prices for profit of $850.00
Still have long put partial hedges in place.
