SPX Credit Spread Trader

Hey Yipp


I decided to close my CTM/ITM call for a profit. RUT is showing some strength going to the close. I like when RUT is weaker than SPX but today RUT is stronger.

I opened:

20 RUT FEB 790/800 call @5.30 credit
3 RUT FEB 790/800 call @5.80 credit
31 RUT FEB 820/830 call@ 2.05 credit.

Closed 20 RUT 790/800 call @ 3.75 debit. 1.55 profit. It's good enough for me. 3K profit and FEB has just started.

I will keep my 3 RUT FEB 790/800 call @5.80 credit and the
31 RUT FEB 820/830 call@ 2.05 credit is now worth 0.60.





Quote from yip1997:

Mark,

TOS has an option to send your order to the desk, but i think it has a min size requirement (the software doesn't say so. You have to talk to the support to find out).
More...
 
piccon, you might have already answered this but I'm having a hard time looking for the answer through 2000+ pages :)

anyways, quick question, If RUT rallies 20 points all of a sudden tomorrow, would you close out your bear call spreads or will you wait it out depending on what your TA tells you?

I see you're generating a lot of $ from the credits but can't help but feel you're risking too much to get the amount of credit you want? just curious.

thanks!

Quote from piccon:

Hey Yipp


I decided to close my CTM/ITM call for a profit. RUT is showing some strength going to the close. I like when RUT is weaker than SPX but today RUT is stronger.

I opened:

20 RUT FEB 790/800 call @5.30 credit
3 RUT FEB 790/800 call @5.80 credit
31 RUT FEB 820/830 call@ 2.05 credit.

Closed 20 RUT 790/800 call @ 3.75 debit. 1.55 profit. It's good enough for me. 3K profit and FEB has just started.

I will keep my 3 RUT FEB 790/800 call @5.80 credit and the
31 RUT FEB 820/830 call@ 2.05 credit is now worth 0.60.
More...
 
Quote from piccon:

Hey Yipp


I decided to close my CTM/ITM call for a profit. RUT is showing some strength going to the close. I like when RUT is weaker than SPX but today RUT is stronger.

I opened:

20 RUT FEB 790/800 call @5.30 credit
3 RUT FEB 790/800 call @5.80 credit
31 RUT FEB 820/830 call@ 2.05 credit.

Closed 20 RUT 790/800 call @ 3.75 debit. 1.55 profit. It's good enough for me. 3K profit and FEB has just started.

I will keep my 3 RUT FEB 790/800 call @5.80 credit and the
31 RUT FEB 820/830 call@ 2.05 credit is now worth 0.60.
More...

Good job! I have a different opinion. I think the whole market is struggling, and I don't think rut will go beyond 800 this month (the high is around 801).

I just closed my 810 call, and open half size of 800 call based on my outlook.
 
I don't see the risk compare to FOTM. If I take 5$ credit for a ITM or CTM and then you take 0.70c for an FOTM; I believe you take more risk than I do.


I already closed my 790/800 for 1.55 so I have none to close now. I will keep the 820/830 call and I will try to open a 30-35 points away PUT Spreads sometime this week.

Quote from polpolik:

piccon, you might have already answered this but I'm having a hard time looking for the answer through 2000+ pages :)

anyways, quick question, If RUT rallies 20 points all of a sudden tomorrow, would you close out your bear call spreads or will you wait it out depending on what your TA tells you?

I see you're generating a lot of $ from the credits but can't help but feel you're risking too much to get the amount of credit you want? just curious.

thanks!
More...
 
I wasn't sure if you normally hold to expiry or not. So I guess you usually close it once you see acceptable profit.

thanks.

Quote from piccon:

I don't see the risk compare to FOTM. If I take 5$ credit for a ITM or CTM and then you take 0.70c for an FOTM; I believe you take more risk than I do.


I already closed my 790/800 for 1.55 so I have none to close now. I will keep the 820/830 call and I will try to open a 30-35 points away PUT Spreads sometime this week.
More...
 
I am waiting for a bounce to do more Bear call; maybe 800/810 or 790/800 again. I know for sure the market will go down in the next 2 months but I am willing to take profit as they come and then open other trades. I am open to short 790/800 again if TA alllows.

I was going to open a PUT 770/760 to balance my 790/800 and keep it but I found it's better to keep one trade at a time. The PUT would have balanced it for sure but it would take me longer to generate profit.

If the market was oversold, I wouldn't hesitate to open 770/760 PUT.

Yipp,

Everbody finds my strategy too aggressive but I am telling you that this account went from 43K to 28K by doing FOTM only; Since october, I decided to go CTM, ITM, OTM combined and since then the account went from:

28K to 33K to 48K to 56K and now is worth 63K. Until it's broken, I am not going to fix anything.

I know the risk and I am willing to take it. My objectives are clear: generate 7-8K a month.

I am not going to ask anyone to follow my strategy because of the risks involved but I will always share my options strategy with you guys and I will post the trades (winners or losers)

Good luck

Quote from yip1997:

Good job! I have a different opinion. I think the whole market is struggling, and I don't think rut will go beyond 800 this month (the high is around 801).

I just closed my 810 call, and open half size of 800 call based on my outlook.
More...
 
Quote from piccon:

I know for sure the market will go down in the next 2 months...

Good luck
More...

You can't be serious?

If you know for sure, how come your positions are so small?

Why don't you mortgage the house and sell call spreads? Or buy puts?


Mark
 
I open 3 RUT FEB PUT 770/760@2.80

So now the condor is : 3RUT FEB 790/800/770/760@8.60 credit

I don't see anything wrong in risking 1.40 for a possible 8.60 reward.

Quote from yip1997:

Good job! I have a different opinion. I think the whole market is struggling, and I don't think rut will go beyond 800 this month (the high is around 801).

I just closed my 810 call, and open half size of 800 call based on my outlook.
More...
 
You can't be SIRIUS. What if I don't have a house? You want me to mortgage my son?

Quote from dagnyt:

You can't be serious?

If you know for sure, how come your positions are so small?

Why don't you mortgage the house and sell call spreads? Or buy puts?


Mark
More...
 
Quote from piccon:

Yipp,

Everbody finds my strategy too aggressive but I am telling you that this account went from 43K to 28K by doing FOTM only; Since october, I decided to go CTM, ITM, OTM combined and since then the account went from:

28K to 33K to 48K to 56K and now is worth 63K. Until it's broken, I am not going to fix anything.

I know the risk and I am willing to take it. My objectives are clear: generate 7-8K a month.

I am not going to ask anyone to follow my strategy because of the risks involved but I will always share my options strategy with you guys and I will post the trades (winners or losers)

Good luck
More...

piccon,

I don't think your strategy is aggressive, as long as it fits your style. Some sell naked calls as well. The bottom line is to generate consistent profit.

I appreciate your sharing with your trades. I think ITM, ATM and CTM are good for short term trading.

RUT is very volatile, and it provides a lot of short-term opportunities for directional traders.
 
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