Pretty consistent drops in SEP/OCT off of Fed meeting.l COuld use a nice small one to keep my diagonal safe but quite valuable and also to enter some OCT or NOV spreads..
SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Yeah, I just added more 1375/1390 Oct SPX bear calls yesterday. I even tried a November 1395/1400 for $0.40 but changed my mind mid day and cancelled the order.
Quote from RichardRimes:
Interesting table....I did notice some of the drops began prior to Sep expiration so I'm assuming the total of the drops could have lasted past Oct expiration. It is certainly more ammunition for the bears this time of yearare you doing any bear call CS's?
Trying to get fills, 30 days left to expiration so premiums shrinking...
Just bringing this up again so I do not have to dig for it
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%
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%
UPDATE - New Experimental Put Calendar Spread:
Original Position
BOUGHT 1 OCT EW 1290 Put @ 12.00 ($600 EOM Options)
SOLD 1 SEP ES 1290 Put @ 2.50 ($125)
NeT Debit = $475.00 9.50
-------> Short SEP ES Put expired worthless.
Sold 1 SEP EW 1290 Put at 1.00 ($50)
NEW NET DEBIT = $425.00
Looking for nice pullback in market for the spread to go up in value. If EW expires worthless, then I will sell a put in the OCT ES cycle and then look to the OCTR EW cycle if needed.
Original Position
BOUGHT 1 OCT EW 1290 Put @ 12.00 ($600 EOM Options)
SOLD 1 SEP ES 1290 Put @ 2.50 ($125)
NeT Debit = $475.00 9.50
-------> Short SEP ES Put expired worthless.
Sold 1 SEP EW 1290 Put at 1.00 ($50)
NEW NET DEBIT = $425.00
Looking for nice pullback in market for the spread to go up in value. If EW expires worthless, then I will sell a put in the OCT ES cycle and then look to the OCTR EW cycle if needed.
I've been looking for some diagonal plays for Oct and really have found much until this morning:
oct 1285p/nov 1265p mid is 2.80 debit
oct 1325p/nov 1300p mid is 1.45 credit (half size)
oct 1375c/nov 1400c mid is .45
The risk profile doesn't look too bad but VIX is going up with the drop today so it makes this set of diagonals a little more risky as the VIX could go back down to its recent floor of 11ish. Comments anyone?
oct 1285p/nov 1265p mid is 2.80 debit
oct 1325p/nov 1300p mid is 1.45 credit (half size)
oct 1375c/nov 1400c mid is .45
The risk profile doesn't look too bad but VIX is going up with the drop today so it makes this set of diagonals a little more risky as the VIX could go back down to its recent floor of 11ish. Comments anyone?
I do not expect a crash but I do seeing us having a nice pullback after the run up to 5 year highs. Usually the market tests such resistance a few times before spiking through. With the Fed news pretty much predicted I doubt the announcement will move us much upward but certainly could lead to a small sell-off.
Today's move lower was nice and quite welcome to back off slighlty from my Diagonal Spread and to give me a chance to enter into a put spread for OCT.
Today's move lower was nice and quite welcome to back off slighlty from my Diagonal Spread and to give me a chance to enter into a put spread for OCT.