SPX Credit Spread Trader

Quote from optioncoach:

I gave up on stock options a long time ago :D

Too many stock specific variables to deal with and abnormal skews due to eearnings or news announcements (which of course also present trading opportunities I guess).
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I agree.

BTW, yesterday i opened a credit spread 1130/1100 @ 1.40, today the mid point for 1130/1100 is around 0.7. Should I cover it or should I wait till it both worthless? The expectancy for the trade initially was 0.7 and I got it today.
 
A bit off topic. Does anyone have an opinion on this trade?

6.28 bot 75 OIH vert Jul 140/145 call@2.40

sold 75 OIH vert Jul 145/150 @1.60

resulting position 75 x 150 x 75 40/45/50 OIH long jul fly.

fly currently trading ~1.50.

OIH @ 141.22.

Ring the register or sit on my hands another day or two? All opinions/recommendations/flames welcome! :)
 
Quote from volatilitypimp:

A bit off topic. Does anyone have an opinion on this trade?

6.28 bot 75 OIH vert Jul 140/145 call@2.40

sold 75 OIH vert Jul 145/150 @1.60

resulting position 75 x 150 x 75 40/45/50 OIH long jul fly.

fly currently trading ~1.50.

OIH @ 141.22.

Ring the register or sit on my hands another day or two? All opinions/recommendations/flames welcome! :)
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Well, seeing as all opinions are welcome...

I've got a (much smaller!) bull spread in OIH.

I think it'll be pinned to 140 or 145 come expiration.

I would probably wait and see how tomorrow unfolds.
 
Quote from ryank:

How wide was your spread? Puts/calls?
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Calls. I think the strike difference was $5 and 10. The problem was that the bid ask spread was too big (for PD). I probably could make money before the front month expired, but the gain was too small for me to take it because of the wide bid ask spread.
 
Quote from Neoxx:

Well, seeing as all opinions are welcome...

I've got a (much smaller!) bull spread in OIH.

I think it'll be pinned to 140 or 145 come expiration.

I would probably wait and see how tomorrow unfolds.
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I have a lot of naked writes for OIH in both Jul, Aug and Oct :)
 
Quote from volatilitypimp:

A bit off topic. Does anyone have an opinion on this trade?

6.28 bot 75 OIH vert Jul 140/145 call@2.40

sold 75 OIH vert Jul 145/150 @1.60

resulting position 75 x 150 x 75 40/45/50 OIH long jul fly.

fly currently trading ~1.50.

OIH @ 141.22.

Ring the register or sit on my hands another day or two? All opinions/recommendations/flames welcome! :)
More...

The daily swing for OIH can go as high as $10. I don't like to have strikes close to the daily range. It makes me hard to adjust my positions.
 
Haven't put my neck on the line enough so I'll fine-tune the prediction

If OIH closes above 141.26, I think it will test 145 tomorrow and end the week on 140. :eek:
 
Today's S&P increase caught me by surprise. :eek: I rolled my JUL OEX 580/585 bear call into a JUL 575/580 bull call. Should break even if OEX reaches 580 and stays there tomorrow.
 
Quote from Neoxx:

Well, seeing as all opinions are welcome...

I've got a (much smaller!) bull spread in OIH.

I think it'll be pinned to 140 or 145 come expiration.

I would probably wait and see how tomorrow unfolds.
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I agree with Neoxx I have OIH calendars and think it could go up some tomorrow...might be a good day to cash in. GL
 
Quote from optioncoach:

PUT DIAGONAL SPREAD for SEP/AUG

On the nice VIX drop down and seeing potential for some interesting swings from now until Aug Fed meeting I opened my first DEBIT diagonal spread using puts:

Sold 20 AUG ES 1225 Puts @ 8.75

Bought 20 SEP ES 1200 Puts @ 11.00

Net Debit = 2.25 or $2,250
VIX = 14.57
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Coach,

How do we compute the return on risk for diagonal spread?

Since you have traded both ES and SPX, can you tell me the benefit of trading ES as compared to SPX? It seems to me the only benefit of trading ES option is lower margin requirement using span margin calculation. If ES is better, why do you continue to trade SPX credit spreads?
 
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