SPX Credit Spread Trader

[ryank]

Quote from rsflint:

Well the SPX sure gapped up more than I thought it would. Currently I am in the following Oct 2006 position:

1350/1360 - $0.80
1250/1260 - $0.50
Total Credit = $1.30

My rules call for a 1340 adjustement. I'm not holding my breath hopefully SPX will pull back down a bit

1350/1360 current mid $3.85 :eek:
1250/1260 current mid $.425

The market is heading right into my sag in my diagonals. A nice sharp pull back would help both of us .

 

[Sailing]

VEGA Believers,

You gotta be a believer of VEGA depreciation after a day like today.... tremendous effect on the Double Diagonal.

But not to worry... expiration is still three weeks off.

M~

PS Placed a tent pole on the Double Diagonal, ie, sold a 1325 Put Calendar Oct/Nov on this volatility drainage day.

 

[Sailing]

Patiently waiting for coach to place hedge position.... ie, anytime now Phil would be appreciated.

M~

 

[tyrant]

Quote from Beachie:

9/4/06

thanks

 

[riskarb]

Quote from Sailing:

VEGA Believers,

You gotta be a believer of VEGA depreciation after a day like today.... tremendous effect on the Double Diagonal.

But not to worry... expiration is still three weeks off.

M~

PS Placed a tent pole on the Double Diagonal, ie, sold a 1325 Put Calendar Oct/Nov on this volatility drainage day.

You sold a put calendar at VIX < 11?

 

[El OchoCinco]

It is someone else's turn this time lol.... I am sitting on my short 1340 strike for ES (which is at 1346.50 right now)....

Quote from Sailing:

Patiently waiting for coach to place hedge position.... ie, anytime now Phil would be appreciated.

M~

 

[El OchoCinco]

Wow I actually understand that....

Quote from riskarb:

You sold a put calendar at VIX < 11?

 

[tyrant]

Quote from ryank:

1350/1360 current mid $3.85 :eek:
1250/1260 current mid $.425

The market is heading right into my sag in my diagonals. A nice sharp pull back would help both of us .

The call diagonals increased in value from about $0.80 to $3.85? Hows that different from credit spreads in terms of safety? I am also a bit confused from prior posts that in diagonals, you want your short strike to be breached???(obviously not in this case) Or does that only refer to when the front month is about to expire, and you want the price to go near your short strikes to gain maximum on your long options? any explanation is much appreciated.

 

[tplast]

Quote from tyrant:

The call diagonals increased in value from about $0.80 to $3.85? Hows that different from credit spreads in terms of safety? I am also a bit confused from prior posts that in diagonals, you want your short strike to be breached???(obviously not in this case) Or does that only refer to when the front month is about to expire, and you want the price to go near your short strikes to gain maximum on your long options? any explanation is much appreciated.

I think ryank was just commenting on the current value of rsflint's positions, but didn't mention his own.

 

[rsflint]

Quote from ryank:

1350/1360 current mid $3.85 :eek:
1250/1260 current mid $.425

The market is heading right into my sag in my diagonals. A nice sharp pull back would help both of us .

Ryan, yah the 1350/1360 is looking ugly. I ran the #s today and figured min $4 to close it which will be PAINFUL. I know you are in a diag, but what are your thoughts for a new position to open?? For example I was thinking about opening at 1360/1370 after to offset the debit..but with OC not doing his hedge and Cramer-speak, who knows what will happen!! I've checked the technicals and all say bullish except stochastics and fibonacci which are very bearish. Thanks for the post and response in advance.