SPX Credit Spread Trader

Hmm I wonder if we will close back near 1326 on the SPX today. for the ES, if we move below 1339, I think we head lower from there. Right now still sideways off of the ES high of 1343...

Will watch it and see how the day runs.. I have a short ES order at just below 1339...
 
Tyrant,

Although Mo takes little credit for his contributions, most of us here appreciate his words of wisdom.... his insights and well versed responses have much deeper meaning than what one would first interpret.

Take his advice to heart.... it is some of the best advice on this thread.

M~



Quote from tyrant:

I am new to options but I believe with higher rewards comes greater risk. Since almost everybody here seems to think that diagonals are better or more manageable than credit spreads, I would like to know what is the disadvantages of diagonals (compared to credit spreads ) and also under what circumstances will it lose money. The way you guys put it is as though it is quite unlikely to lose if you manage it properly.

Also someone mentions that diagonals are suitable in low volatility environment. So, if volatility goes above, say, 20 for extended period of time, is it better to do credit spreads then? Or is it workable, day in day out, regardless of where volatilities is heading?
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Quote from tyrant:

I am new to options but I believe with higher rewards comes greater risk. Since almost everybody here seems to think that diagonals are better or more manageable than credit spreads, I would like to know what is the disadvantages of diagonals (compared to credit spreads ) and also under what circumstances will it lose money. The way you guys put it is as though it is quite unlikely to lose if you manage it properly.

Also someone mentions that diagonals are suitable in low volatility environment. So, if volatility goes above, say, 20 for extended period of time, is it better to do credit spreads then? Or is it workable, day in day out, regardless of where volatilities is heading?
More...

There was a good discussion starting around page 1637.
 
Quote from optioncoach:

Hmm I wonder if we will close back near 1326 on the SPX today. for the ES, if we move below 1339, I think we head lower from there. Right now still sideways off of the ES high of 1343...

Will watch it and see how the day runs.. I have a short ES order at just below 1339...
More...

I'm not sure it'll go down this week. At this point I think we'll have to go to the all time high on the Dow first. I've been scalping long futures on intraday dips, but my core postion is still short and have also been adding a few CTM call credit spreads.
 
Quote from Beachie:

There was a good discussion starting around page 1637.
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Dude, depends on your posts per page settings. Might want to give a date as reference.

For example, Your msg is on page 262 by my settings. You mean I got to wait until 2012 AD till I read these informative posts you speak of?!
 
There was an inverse head and shoulders pattern on the ES 5min chart which broke out to the upside around 2:00 PM. 1346/1347 is the extent of the measured move and I would like to see us pull back off of it into the close and into 4:15 PM. If not then we will certainly test the ES high of 1353.

Not going to adjust my 1340EW/1360ES diagonal yet as the 1340 calls have about 3 points of time value premium..

Quote from tplast:

I'm not sure it'll go down this week. At this point I think we'll have to go to the all time high on the Dow first. I've been scalping long futures on intraday dips, but my core postion is still short and have also been adding a few CTM call credit spreads.
More...
 
Quote from dagnyt:

OK. I give up. How do I change these settings?

Mark
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Upper right hand corner click on Your Account. On the next screen click on Edit Options. Scroll down and change Default Posts per Thread by using the pull down box.
 
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