SPX Credit Spread Trader

If we push and close below 1341 on the futures, I would expect us to reach for 1330 in the near future on a normal pullback.

With SPX I see a break of 1330 taking us possibly to somewhere near 1320..
 
Quote from optioncoach:

Market seems to agree with me lol.... too bad i have not gotten filled yet...

I had an order to sell 60 1360/1365 OCT Call spreads at $1.10. With the recent intraday crash, the b/a fell pretty fast so no fill....
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Phil, it is very difficult to get a mid fill or close to it with these CTM spreads especially the last 3 weeks of the cycle. I often use the ES paper instead.
 
The quote moved to $0.85/$1.95 at one point and no fill....

No atonement for those MMs....

Quote from rallymode:

Phil, it is very difficult to get a mid fill or close to it with these CTM spreads especially the last 3 weeks of the cycle. I often use the ES paper instead.
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Quote from optioncoach:

The quote moved to $0.85/$1.95 at one point and no fill....

No atonement for those MMs....
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Well i am sure you've noticed but it is likely that it was a small retail order that stepped inside the market on one of the legs and distorted the resulting combo quote. I dont remember how many times I've sat at 5 cents off the market with no fills. Unless you see 200+ lots on all four sides of the combo, i wouldnt even expect a fill at/close to mid point. Theoretical mid point is often not the same as the screen mid point.
 
Quote from riskarb:

They're a poor directional strategy when traded within one sigma. Made worse when traded otm on the call side. I've only bought downside diagonals into a prediction of bear volatility, but prefer a same-strike spread // diagonal in that case. I was only making the point that diagonals are preferable to the penny/nickel verticals.
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risk, in your opinion; can one over the longterm trade short options for substantial profits 3 sigma's out?
 
Quote from domestic:

can one over the longterm trade short options for substantial profits 3 sigma's out?
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My experience over the last couple of months, low risk on the upside. Can make a good profit on a reversal, but can make consistent income on just the pullbacks.
 
Quote from domestic:

risk, in your opinion; can one over the longterm trade short options for substantial profits 3 sigma's out?
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Not in terms of ROI%, but it's possible to dodge that bullet.
 
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Quote from domestic:

risk, in your opinion; can one over the longterm trade short options for substantial profits 3 sigma's out?
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Quote from riskarb:

Not in terms of ROI%, but it's possible to dodge that bullet.
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How do you suppose this guy's doing it? :confused:

http://www.ljmfund.com/content/history.html
 
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