SPX Credit Spread Trader

The last three months have been pretty good for me and I am not looking forward to giving it back again. That's why I enter only PUT or only call from now on and it will be on OB/OS only.

As of right now, I am up almost 5K on my FEB calls and I don't know If I should take it and run. Not often you make 5K in 3 trading days.

I have right now:

20 FEB 790/800 CALL @5.30 credit
3 FEB 790/800 CALL @5.80 credit
31 FEB 820/830 CALL@ 2.05 credit

If We have another drop tomorrow, I may close all of them.

Quote from yip1997:

Nice! A combination of ITM, CTM, and OTM is indeed a very good strategy.

I am still holding Jan 810/800 call and Feb/Jan 790 put. Will close the calendar after 3 pm today.

If you look at RUT for the month, it stayed at around last settlement price. Jan should be a good month for those who trade rut credit spread.
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Quote from piccon:

The last three months have been pretty good for me and I am not looking forward to giving it back again. That's why I enter only PUT or only call from now on and it will be on OB/OS only.

As of right now, I am up almost 5K on my FEB calls and I don't know If I should take it and run. Not often you make 5K in 3 trading days.

I have right now:

20 FEB 790/800 CALL @5.30 credit
3 FEB 790/800 CALL @5.80 credit
31 FEB 820/830 CALL@ 2.05 credit

If We have another drop tomorrow, I may close all of them.
More...

Good Luck to you - whatever you decide.

I am having a heck of a time getting any fills for SPX Feb PUTS since VIX is just sucky low and I am not going to put my self at risk at these ridiculous premium levels. The only alternative is to go closer to the money and I don't see any good support TA levels closer in than I am currently trying to fill on.

On the other hand this Jan front month has been a very good month. I am holding all my positions safely through expiration except for the RUT position I closed 2 days early for 80% of potential. I was concerned about a late sell of such as we saw today (but it turned out to not be deep enough to cause worry).

On a side note, I never would have dreamt that APPL having such good earnings would be a signal for a tech sell off. The fortuitous thing with APPL is that I also happened to have a side bet debit spread that was at max theoretical & with too much extrinsic value that I wanted to let run. I took today's large dip to by back my shorts and open it up to run into March. Should be a nice winner too.

TS
 
Quote from piccon:

The last three months have been pretty good for me and I am not looking forward to giving it back again. That's why I enter only PUT or only call from now on and it will be on OB/OS only.

As of right now, I am up almost 5K on my FEB calls and I don't know If I should take it and run. Not often you make 5K in 3 trading days
More...

Do you mean you will exit your call spreads if/when you enter a put spread? Or do you mean you won't enter both a call spread and put spread at the same time (I think you said earlier that you put on both positions during expiration week)?
 
That what I used to do but this time I go only call. When timing is right I will enter PUT or I will close Call and enter PUT if the BUY signal is strong.

Quote from ryank:

Do you mean you will exit your call spreads if/when you enter a put spread? Or do you mean you won't enter both a call spread and put spread at the same time (I think you said earlier that you put on both positions during expiration week)?
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It's risky right now to enter PUT credit spreads. For the next 3 months I will make sure I enter PUT spreads only when everybody is looking for cover which means the market is ready to turn around.

The market is too extended to start entring PUT spreads right now.

Quote from TrendSailor:

Good Luck to you - whatever you decide.

I am having a heck of a time getting any fills for SPX Feb PUTS since VIX is just sucky low and I am not going to put my self at risk at these ridiculous premium levels. The only alternative is to go closer to the money and I don't see any good support TA levels closer in than I am currently trying to fill on.

On the other hand this Jan front month has been a very good month. I am holding all my positions safely through expiration except for the RUT position I closed 2 days early for 80% of potential. I was concerned about a late sell of such as we saw today (but it turned out to not be deep enough to cause worry).

On a side note, I never would have dreamt that APPL having such good earnings would be a signal for a tech sell off. The fortuitous thing with APPL is that I also happened to have a side bet debit spread that was at max theoretical & with too much extrinsic value that I wanted to let run. I took today's large dip to by back my shorts and open it up to run into March. Should be a nice winner too.

TS
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Tomorrow there might be a continuation of the tech fallout. So I got:

2.05 for 31 FEB 820/830 Call. Now it's worth 0.80. tomorrow could come down to 0.30 and I will be out. Will make at least 5K if the scenario occurs

20 FEb 790/800 Call @ 5.30: I want to keep it for a while unless I can get 2/3 of the premium. I am looking forward to closing the 790 and keep 800 for a BULL CALL conversion with 800/810 debit spread. (will make money on the way down and also on the way up.) But I need a buy signal first.

IBM down big after market means everything will be down tomorrow, DOW has been strong the last three days but I think It will be hit hard tomorrow.

There may be some chance for a bounce next week; I will enter some PUT if any signal shows up


Quote from piccon:

The last three months have been pretty good for me and I am not looking forward to giving it back again. That's why I enter only PUT or only call from now on and it will be on OB/OS only.

As of right now, I am up almost 5K on my FEB calls and I don't know If I should take it and run. Not often you make 5K in 3 trading days.

I have right now:

20 FEB 790/800 CALL @5.30 credit
3 FEB 790/800 CALL @5.80 credit
31 FEB 820/830 CALL@ 2.05 credit

If We have another drop tomorrow, I may close all of them.
More...
 
Quote from piccon:

What does it represent in term of profit/loss
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For Feb/Jan 790 put alone, it is a loss of 0.45. This trade was a hedge to Jan 800/810 call vertical. I made 0.8 for the call vertial. The combined vertical with the hedge made 0.35.

Overall I made around 2.5% return on my portfolio this month.
 
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