SPX Credit Spread Trader

rut was so strong that it passed my short strike (760) of my call diagonal.

I don't want to lose the weekend decay so I longed 790 Jan call to reduce my delta/gamma risk.
 
Quote from tplast:

I've never hold them until expiration, but instead exit as soon as 2-3 credit profit is available. In any case, I close them before expiration week.

And no, I didn't do any put spreads as we never got a drop.
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Can you please explain "2-3 credit profit"? Is it that you exit if the position now is 2:3 risk-reward? Thanks, tplast.

I didnt put on put spreads either, for the same reason - and this has happened for the past 3 months.

So decided to not to try to "time" these things any more and instead just put on both calls and puts spreads simulataneously to get a market neutral position.
 
Quote from optioncoach:

Just an aside, I am having am amazing view out my window today and yesterday. I live near the pentagon and they are dedicating a new Air Force memorial in a few days.

For the day they are going to have a big air show flying overhead and they have been practicing over my building flying REALLY low. There were F-14 and F-16s flying in formations and dog fighting over head. I swear they were about 100 feet over the top of my building. I just saw one of those flat stealth bombers go over and right now 3 F-14s and a single jet flew over in tight formation. Every 10 minutes I hear a roar and rush to my balcony and see some really cool air force jets flying at about 750 feet or so.

Anyway it is a nice distraction but a little scary how close to the tall buildings here they are lol..
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Nice. I didn't know you were in DC-proper. We have the Chicago Air Show at North Avenue Beach. They don't fly the B2s in the show anymore, but in year's past they would fly the B2s a few hundred feet over our bldg. An amazing sight. Our building went from 800 residents to 5000 over that weekend.
 
Yeah it has been an amazing site out my balcony. I wanted to see if I coudl take any out with a tennis ball :). The stealth bomber was the coolest. Never saw one that close and amazed how quiet it is compared to the fighter jets.

Anyway, nice break from watching my DOUBLE CROSS MONTH FLY + REVERSE CALENDAR thing a ma jiggy....

Quote from riskarb:

Nice. I didn't know you were in DC-proper. We have the Chicago Air Show at North Avenue Beach. They don't fly the B2s in the show anymore, but in year's past they would fly the B2s a few hundred feet over our bldg. An amazing sight. Our building went from 800 residents to 5000 over that weekend.
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Quote from blk:

Can you please explain "2-3 credit profit"? Is it that you exit if the position now is 2:3 risk-reward? Thanks, tplast.
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It means that I close the postion when I can buy it back for $2 or $3 less debit than the credit I received.
 
Just something to think about. It's interesting when looking at the charts that the last time SPX was higher than this was during the tech bubble, which everyone considers idiotic in retrospect.

I think it is still relatively safe to say that we are in the "dumb money" stage of this rally.
 
With the vols so low I'm thinking about buying some ratio syntethic straddles: long 4 ES nov 1335 puts, long 1 ES december future.

I hate to pay the decay for the weekend, but don't want to miss any potential gap on Monday. I'll probably enter 1/2 today and the rest on Monday.

This is a vega play. I'll use a 2 week time stop and exit on a vol spike (remember those ?)

What do you guys think?
 

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I'm not sure how true this is, but I always heard that they priced in weekend theta by Friday afternoon.

Quote from tplast:

With the vols so low I'm thinking about buying some ratio syntethic straddles: long 4 ES nov 1335 puts, long 1 ES december future.

I hate to pay the decay for the weekend, but don't want to miss any potential gap on Monday. I'll probably enter 1/2 today and the rest on Monday.

This is a vega play. I'll use a 2 week time stop and exit on a vol spike (remember those ?)

What do you guys think?
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I got a multiroll call diagonal, Rut Oct/Dec 760/800 call at a debit of 1.0

Now RUT is around 763, and the diagonal price at 0.4.

How do we adjust a multiroll diagonal? At what time should we roll it? Any suggestions?
 
Quote from optioncoach:


Anyway, nice break from watching my DOUBLE CROSS MONTH FLY + REVERSE CALENDAR thing a ma jiggy....
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You have to come up with an official TM name for that crazy fly infestation :D
 
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