10,000 posts
...back to lurking with me
...back to lurking with me
SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
UPDATE- CALL DIAGONAL POSITION
Sold 135 SEP EW 1340 Calls @ 6.50 ($43,875 Credit)
Bot 150 OCT ES 1360 Calls @ 5.25 ($39,375 Debit)
Net Credit = $4,500
Max Theoretical Risk = $150,000
Current Return on Risk = 3%
-----------> Spread can be closed right now for 0.10 credit and additional profit. I do not see much strength to the upside so I may leave it there to have the 1340 expire worthless and grab additional profits on the OCT ES calls. I am also interested in adding to the position for the last two weeks as I really feel that with a Fed meeting coming up and not much great news coming and that we are in SEP and OCT, the futures will not have much power to push over 1340... Look for an update shortly as I have an order pending.
Thanks Murray!
Sold 135 SEP EW 1340 Calls @ 6.50 ($43,875 Credit)
Bot 150 OCT ES 1360 Calls @ 5.25 ($39,375 Debit)
Net Credit = $4,500
Max Theoretical Risk = $150,000
Current Return on Risk = 3%
-----------> Spread can be closed right now for 0.10 credit and additional profit. I do not see much strength to the upside so I may leave it there to have the 1340 expire worthless and grab additional profits on the OCT ES calls. I am also interested in adding to the position for the last two weeks as I really feel that with a Fed meeting coming up and not much great news coming and that we are in SEP and OCT, the futures will not have much power to push over 1340... Look for an update shortly as I have an order pending.
Thanks Murray!
For educational purposes, here is an update on an ES put diagonal I just closed.
8/14 ES 1281 VIX 13.5
I sold SEP 1200P and bot OCT 1230P for a net debit of (2.25).
9/12 ES 1319 VIX 12.36
I closed the diagonal for a credit of 1.75 for a loss on the trade of (0.50).
I could have exited yesterday morning for near b/e, but was busy with work and got caught unaware with the surge later in the day.
In the end, ES is over 30 points higher than when I entered the put diagonal. VIX is a full point lower, and I could have timed my exit better. Yet I still only lost 0.50 on the trade. I also had options to sell against the long 1200, but chose to just clear this one off the books.
I also have a -SEP1260P/+OCT1230P that is about 0.50 above b/e. If I can get a good price to cover the 1260 shorts, I will close them and create a bull put spread with the OCT1230.
I am experimenting with a 1lot SEP EW 1335C / OCT ES 1350C diag entered for a debit of (0.75). VIX has already dropped quite a bit on the turn up, so I am relatively protected from a volty collapse. The 1335 target is a few points above the most recent swing high.
8/14 ES 1281 VIX 13.5
I sold SEP 1200P and bot OCT 1230P for a net debit of (2.25).
9/12 ES 1319 VIX 12.36
I closed the diagonal for a credit of 1.75 for a loss on the trade of (0.50).
I could have exited yesterday morning for near b/e, but was busy with work and got caught unaware with the surge later in the day.
In the end, ES is over 30 points higher than when I entered the put diagonal. VIX is a full point lower, and I could have timed my exit better. Yet I still only lost 0.50 on the trade. I also had options to sell against the long 1200, but chose to just clear this one off the books.
I also have a -SEP1260P/+OCT1230P that is about 0.50 above b/e. If I can get a good price to cover the 1260 shorts, I will close them and create a bull put spread with the OCT1230.
I am experimenting with a 1lot SEP EW 1335C / OCT ES 1350C diag entered for a debit of (0.75). VIX has already dropped quite a bit on the turn up, so I am relatively protected from a volty collapse. The 1335 target is a few points above the most recent swing high.
UPDATE- CALL DIAGONAL POSITION
Sold 135 SEP EW 1340 Calls @ 6.50 ($43,875 Credit)
Bot 150 OCT ES 1360 Calls @ 5.25 ($39,375 Debit)
Net Credit = $4,500
Max Theoretical Risk = $150,000
Current Return on Risk = 3%
I shorted 2x as many SEP EW and added more OCT ES to even out the legs.
I did so by shorting 135 SEP EW 1340 Calls @ 3.30 ($22,275) and buying 120 OCT ES 1360 Calls at 2.75 ($16,500) for a net credit of $5,775.
New Net Credit = $10,275
Max Theoretical Risk = $270,000
Return = 3.8%
Potential for large additional returns at expiration of short EW calls. I will have tight controls on this position to make sure it does not run away from me with 2.5 weeks to EW expiration.
Sold 135 SEP EW 1340 Calls @ 6.50 ($43,875 Credit)
Bot 150 OCT ES 1360 Calls @ 5.25 ($39,375 Debit)
Net Credit = $4,500
Max Theoretical Risk = $150,000
Current Return on Risk = 3%
I shorted 2x as many SEP EW and added more OCT ES to even out the legs.
I did so by shorting 135 SEP EW 1340 Calls @ 3.30 ($22,275) and buying 120 OCT ES 1360 Calls at 2.75 ($16,500) for a net credit of $5,775.
New Net Credit = $10,275
Max Theoretical Risk = $270,000
Return = 3.8%
Potential for large additional returns at expiration of short EW calls. I will have tight controls on this position to make sure it does not run away from me with 2.5 weeks to EW expiration.
Last few days before expiration and the market is pushing towards my short on my sep 1325/oct 1350 call diagonal. Showing a good profit with more room to go (but not too far!). Will look for a good exit soon. Will take some time to get used to cheering the market on towards my short strike.