SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Murray, I've used spread hacker on occassion but usually to find comfirmation on a trade I'm interested in. Ex. Thinking of an IC on IBM I look to see if they do IC's on IBM..or if there are good calendar candidates. Like to see if I'm on the same page as they are. My understanding of spread hacker from the seminar's I've attended is that they chose stocks that are liquid then find the good probability trades that may work. If your looking for candidates for a specific strategy I think its as good place as any to start.
Quote from rdemyan:
Yeah, I was playing around with that last night [We both need to get a life]
If you convert your position to a butterfly, how would you do this exactly and what would be the net resulting options.
rd....well after tallying up total credits for the month so far I did decide to adjust my short call spread this am.
First shortly after opening I did sell 20 1235puts for 4.40 (on fri I bought 20 1220's for 2.85)..then I sold another put vertical 1200/1175 for a .70 credit (25 contracts) neither required any more buying power.
Just now I bought a 1295/1305/1315 B-Fly on 1/2 of my short position (25 contracts)...very interestingly I put a limit in of 1.70 debt and got filled within a few minutes for 1.30:eek: I probably am being too cautious but at least I've reduced my concern by half
and I have a better balance of puts/calls.edit: part of my reasoning is that I had expected more followthru today and when it didn't happen realized we might be just consolidating for a new move up.
Yeah, I decided to bail out of my August 1300/1315 bear call today, for essentially the same reasons you cite. I plan to place another trade as an "adjustment", but I just didn't do it today. I'm going to wait until after the ISM numbers tomorrow. Also I might even place a bull put.:eek: My goal, however, is not to recover all of the loss, but just to minimize it. So if no opportunity presents itself tomorrow for August, I'll wait until after the fed meeting. It was a stupid mistake to place the trade in the first place, entirely due to greed and out of my comfort zone. That's okay, it reminds me of why I have a plan in the first place [now I just need to stick to it ]
]Quote from RichardRimes:
rd....well after tallying up total credits for the month so far I did decide to adjust my short call spread this am.
First shortly after opening I did sell 20 1235puts for 4.40 (on fri I bought 20 1220's for 2.85)..then I sold another put vertical 1200/1175 for a .70 credit (25 contracts) neither required any more buying power.
Just now I bought a 1295/1305/1315 B-Fly on 1/2 of my short position (25 contracts)...very interestingly I put a limit in of 1.70 debt and got filled within a few minutes for 1.30:eek: I probably am being too cautious but at least I've reduced my concern by half
edit: part of my reasoning is that I had expected more followthru today and when it didn't happen realized we might be just consolidating for a new move up.
Quote from rdemyan:
Yeah, I decided to bail out of my August 1300/1315 bear call today, for essentially the same reasons you cite. I plan to place another trade as an "adjustment", but I just didn't do it today. I'm going to wait until after the ISM numbers tomorrow. Also I might even place a bull put.:eek: M t
I have to say the nice thing abt the bull put is you can get pretty far OTM and still have some premium. At least for Aug exp I think we should stay above 1250. I had no problem getting the 1200/1175 filled which should be pretty safe at this pt. GL