SPX Credit Spread Trader

[ryank]

Update time!

I closed out my RUT diagonal a few days ago at a small loss when commissions are taken into account.

I adjusted my SPX diagonal. I closed my 1365/1385 puts and added 1435/1440 puts and 1460/1470 calls (two tent poles). If the market works with me for the next week I should come out in pretty good shape. My breakeven points are about 1428 and 1479 right now (depends on volatility, go VIX ).

 

[ryank]

Quote from piccon:

I keep everything I had I am looking to open some MAR sometimes this week or early next week.

With RUT breaking the resistance level have you made any adjustments?

 

[piccon]

Yes I still keep my 820/830 @2 credit.

I am nursing some 810/820 /770/760@2.30. I am holding on until we get some down days (one or 2). The market is tired and overbought (short term) so I am willing to take the risk and observe.

I could close and move to MAR but I never do that on an overbought market.

Quote from ryank:

With RUT breaking the resistance level have you made any adjustments?

 

[jstancliff]

Piccon -

Are you still holding those 810/820 Rut spreads or have you made some adjustments?





Yes I still keep my 820/830 @2 credit.

I am nursing some 810/820 /770/760@2.30. I am holding on until we get some down days (one or 2). The market is tired and overbought (short term) so I am willing to take the risk and observe.

I could close and move to MAR but I never do that on an overbought market.

 

[piccon]

I don't have as many 810/820 as 820/830 . So I am keeping them for now and I will will wait for either close them or add more PUT to compensate.

The market is going crazy and that's part of it. You need to have guts to stay. I am analyzing it everyday and will make decision in the next day or so.

Quote from jstancliff:

Piccon -

Are you still holding those 810/820 Rut spreads or have you made some adjustments?





Yes I still keep my 820/830 @2 credit.

I am nursing some 810/820 /770/760@2.30. I am holding on until we get some down days (one or 2). The market is tired and overbought (short term) so I am willing to take the risk and observe.

I could close and move to MAR but I never do that on an overbought market.

 

[dagnyt]

Quote from piccon:

You need to have guts to stay.

Been there. Done that.

It's very dangerous. The market can remain irrational for a long time.

I've learned to take what the market gives me and not fight.

I hope it works for you.

Mark

 

[piccon]

very good point. I am looking forward to take my loss and go any time now

Quote from dagnyt:

Been there. Done that.

It's very dangerous. The market can remain irrational for a long time.

I've learned to take what the market gives me and not fight.

I hope it works for you.

Mark

 

[piccon]

I got in 10 810/820/750/740 @ 2.30 credit, Later on closed 750/740 @0.15 debit and open 790/780 PUT @1.30 for a total creditoF:
2 + 1.30 (-0.15) debit =3.15 credit

This morning I closed the 810/820/790/780 condor @6.30 or a loss of 6.30-3.15=3.15 or $3150.00

I am moving on. Still have 820/830 to deal with

Quote from dagnyt:

Been there. Done that.

It's very dangerous. The market can remain irrational for a long time.

I've learned to take what the market gives me and not fight.

I hope it works for you.

Mark

 

[TrendSailor]

I put on a a simple plain-vanilla spread on RUT 2 days ago with only two weeks to Feb exp.

Position: IWM FEB PUT 80/78 credit spread at net credit of $0.45 per contract. Trend appears bullish with good technicals and support at 80. High Put/Call ratio should unwind soon and buoy it up even more. We will see - but so far its looking pretty good for only being exposed for a short time window.

Bummed though since I could have easily gotten .5 or more on the position. But I had to leave a conservative limit order active while away from my trading platform for the day.

TS

 

[ryank]

Mark,

The talking heads have their gums flapping about a coming increase in volatility. With the double diagonals I do that could be good or bad, my timing would have to be good. Assuming we do start getting more volatility, how do you see it affecting the DD that you do?

PS- good book by the way.