SPX Credit Spread Trader

[ryank]

2 days of good moves higher and a drop in volatility is sucking the wind out of my DD. Getting a little close to my short 1400 calls, need to keep a close eye on this move.

How is everyone doing with their ICs? I should have done the CTM put spread a few days ago, didn't put my money where my mouth was .

 

[tplast]

Just finished legging into 20 ES NOV 1400/1405 call spreads for 1.7 credit

 

[MTE]

Quote from ryank:

...How is everyone doing with their ICs?...

Mine are doing good. Lost about half the value since entry.

 

[TrendSailor]

Quote from ryank:

2 days of good moves higher and a drop in volatility is sucking the wind out of my DD. Getting a little close to my short 1400 calls, need to keep a close eye on this move.

How is everyone doing with their ICs? I should have done the CTM put spread a few days ago, didn't put my money where my mouth was .

I am so angry at myself. I started closing down the upside spreads last week. I got out of the 1430/1420 in one account at a debit of .1 but my other account did not execute the same but larger order. I have been trying to get out all week and the debit just keeps increasing - at last check about .3. If i could do penny spreads I would have been completely out of danger for .12-.14 now Its not worth the debit expense but I am beginning to get nervous at the upside strength which I have been very fearful of ever since getting bulldozed last options period to the upside. This bull does not seem to want to give it a rest...

TS

 

[TrendSailor]

Quote from tplast:

Just finished legging into 20 ES NOV 1400/1405 call spreads for 1.7 credit

That's pretty gutsy given the strength to the upside. Do you plan to hold to expiration or close on the first dip down at whatever debit you can get out at?

TS

 

[tplast]

Quote from TrendSailor:

That's pretty gutsy given the strength to the upside. Do you plan to hold to expiration or close on the first dip down at whatever debit you can get out at?

TS

I'll hold them with a 2.5 stop. I may close earlier if we get a good drop.

 

[Cache Landing]

Quote from tplast:

I'll hold them with a 2.5 stop. I may close earlier if we get a good drop.

I'm not trying to criticize, but under the current circumstances I think long puts would be better than a bear call vertical. Those puts are really cheap right now, half the commissions, and much easier to control with a stop. JMHO

 

[kapil]

Quote from Cache Landing:

I'm not trying to criticize, but under the current circumstances I think long puts would be better than a bear call vertical. Those puts are really cheap right now, half the commissions, and much easier to control with a stop. JMHO

The problem is that the spread is a credit and a long put is a debit. Credits are addictive.

 

[tplast]

Quote from Cache Landing:

I'm not trying to criticize, but under the current circumstances I think long puts would be better than a bear call vertical. Those puts are really cheap right now, half the commissions, and much easier to control with a stop. JMHO

Yes, you are right. And I must confess that I didn't even price the puts. I guess because I don't really expect any big drops.

 

[tplast]

Quote from kapil:

The problem is that the spread is a credit and a long put is a debit. Credits are addictive.

I don't have a problem with debits but I feel that you have to be right about more things with the long options than the CTM spreads.

In any case, is always a good idea to compare different strategies and choose the one with the greater expectancy. In this case, that may have been the puts, as Cache pointed out.