SPX Credit Spread Trader

Quote from rallymode:

To me rolling is exactly the same as closing it and then deciding i want to own the new position at that exact moment. More often than not it is not true, hence i dont stay in losers by rolling them. I much rather use the risk somewhere more appropriate or at a better time.
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While you didn't ask me, Andy :p, I agree with Rally from my own sorry experience...rolling a winning trade ( a la a calendar) is fine. Haven't done as well "trying" to roll a losing trade. I do better to try and anticipate (the market) closing the losing trade THEN when market conditions are MORE favorable opening the new one.
 
Quote from rallymode:

yip, that's great. But when you make a post and imply that everyone who doesnt agree with Mark is illogical, expect people to react.

There is more to trading than verticals and diagonals. You can't take a simple risk management rule and apply it out of context to the options world at large.
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RM,

If you read the whole discussion, you will find that I never said everyone who doesn't agree with Mark is illogical. I am sorry if anyone has such feeling.

My previous post (quoted below) explicitly said that your approach is better for passive management (my own conclusion) implying that it is logical.

I don't mind people opposing my viewpoint. I don't mind people who never trade real money or those who lost money in trading post their trading ideas and opinions. In fact I learned a lot from paper traders and losers too. LOL.

I am still learning trading CTM and so I asked piccon questions in order to learn. I think piccon is great. He have found a strategy that works for him. It seems that he made far more money than me in the past 2 months, and so I am ready to learn. Though I am learning from him, I don't have to agree with him 100%.

There are a lot of trading tactics from you I can learn, and I have learned from you in the past. However I hope you understand that I don't agree with you 100%. (Perhaps I am not sophicated enough to understand your strategy)

I am sorry to start such a discussion when I was trying to learn from piccon (though I think it is a great discussion and it is very helpful to me).

Quote from yip1997:

Thank you all for your contribution to the trade adjustment discussion.

I finally understand the logics of both camps. Mark's idea is that the risk tolerance is the same everyday.

However for some traders, since they have sufficient profit (paper or booked), they change the daily risk tolerance.

IOW Mark uses a daily risk tolerance, and others use the monthly risk tolerance. There are nothing wrong with both approaches. I think Mark's approach is better for active management (if you trade full time), and the other approach is better for passive management (if you have another full time job).

BTW, this is my own assessment, and you guys might disagree. [/QUOTE
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Hey guys... Great thread!

Just legged into my first credit spread... so bear with me. Any comments are greatly appreciated.

sto RUT Jan 800/810 call @ .80

Although I do still feel the market has more upside potential compared to the downside, there is plenty of resistance along the way. I would most likely look to close/roll the position if we get closer to 790.
 
Quote from Pete3212:

Hey guys... Great thread!

Just legged into my first credit spread... so bear with me. Any comments are greatly appreciated.

sto RUT Jan 800/810 call @ .80

Although I do still feel the market has more upside potential compared to the downside, there is plenty of resistance along the way. I would most likely look to close/roll the position if we get closer to 790.
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Just hope you didn't trade it because i opened the same trade yesterday. :D
 
OMG Appl just shot up 8% to $92.6. While I was waiting for SPX to give me an opportunity to open a new CALL credit this front month period I opened a substantial CALL side debit spread on APPL. I got a good price at the April 80/95 strike back on Dec 27th when it tanked to 80ish on the S. Jobs options scandal. I still have plenty of time for it to further develop.

I am not an expert on APPL but I liked it fundamentals and upside potential. Anyone have an opinion on if I should take profits here, let it run, lock profits (butterfly?) , or buy back the shorts to open it up?

TS
 
Quote from yip1997:

Just hope you didn't trade it because i opened the same trade yesterday. :D
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Nope, I've been wanting to put this trade on for a few days, just hadn't had the time during the market to look for fills.
 
Bought 1000 shs of APPL at the open today so I'm up almost 6K. May wait for a pull back and buy some calls to scalp. I think it still has room to run but it may take awhile after this runup. JMHO.
 
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