SPX Credit Spread Trader



I would think that most folks who trade combos of stocks, options and futures would figure out quickly what the different reporting req's are related to the different instruments (but maybe not since an experienced trader brought up this topic to begin with).


I was confused because my broker included my 1256 contracts on Schedule D. Had they not done that, it would never have occured to me that they might belong on schedule D in addition to Form 6781.

Mark
 
Quote from dagnyt:



I would think that most folks who trade combos of stocks, options and futures would figure out quickly what the different reporting req's are related to the different instruments (but maybe not since an experienced trader brought up this topic to begin with).


I was confused because my broker included my 1256 contracts on Schedule D. Had they not done that, it would never have occured to me that they might belong on schedule D in addition to Form 6781.

Mark
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I had the same confusion a couple of years ago and called a friend who had experienced the issue the prior year.

But even after he enlightned me, the Taxcut software led me straight thru the issue with no ambiguities whatsoever.

My only point is that 'TaxCut' would have prevented any confusion without the need for me to have asked advise from others.

Hope there is no offense.
 
Quote from yip1997:

good time to sell premium.
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Big Time - surf's UP! I was able to put on a whole new block on the put side for the same premium as I got originally in this month but 100% further out than my first block. Its hugely funny to listen to CNBC and the chicken Little's talking like this is the big one - as if underlying value and earnings just evaporated overnight because the Chicoms (chinese) sold off part of their bubble.

For those long I can't help but think of Cramer right now - BUY BUY BUY (lol)!

I did some of that too and I view this down spike as an EXCELLENT test of portfolio quality and VERY healthy to shake out the weak positions. I had some ripples here and there but man oh man am I convinced that I have some high quality stuff - some are accelerating up and through the noise. What a great time to leverage in on the best quality stuff an over reaction and what a great time to surf this volatility opportunity by selling premium.

TS
 
Quote from TrendSailor:

Big Time - surf's UP! I was able to put on a whole new block on the put side for the same premium as I got originally in this month but 100% further out than my first block. Its hugely funny to listen to CNBC and the chicken Little's talking like this is the big one - as if underlying value and earnings just evaporated overnight because the Chicoms (chinese) sold off part of their bubble.

For those long I can't help but think of Cramer right now - BUY BUY BUY (lol)!

I did some of that too and I view this down spike as an EXCELLENT test of portfolio quality and VERY healthy to shake out the weak positions. I had some ripples here and there but man oh man am I convinced that I have some high quality stuff - some are accelerating up and through the noise. What a great time to leverage in on the best quality stuff an over reaction and what a great time to surf this volatility opportunity by selling premium.

TS
More...
 
Quote from TrendSailor:

Big Time - surf's UP! I was able to put on a whole new block on the put side for the same premium as I got originally in this month but 100% further out than my first block. Its hugely funny to listen to CNBC and the chicken Little's talking like this is the big one - as if underlying value and earnings just evaporated overnight because the Chicoms (chinese) sold off part of their bubble.

For those long I can't help but think of Cramer right now - BUY BUY BUY (lol)!

I did some of that too and I view this down spike as an EXCELLENT test of portfolio quality and VERY healthy to shake out the weak positions. I had some ripples here and there but man oh man am I convinced that I have some high quality stuff - some are accelerating up and through the noise. What a great time to leverage in on the best quality stuff an over reaction and what a great time to surf this volatility opportunity by selling premium.

TS
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TS... What new strikes did you Put on?
 
Quote from TrendSailor:

[Its hugely funny to listen to CNBC and the chicken Little's talking like this is the big one - as if underlying value and earnings just evaporated overnight because the Chicoms (chinese) sold off part of their bubble.


TS [/B]
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yeah, its pretty crazy, they had some economist on saying that this is just the beginning of a 5% drop within the next few weeks

anyways, I'm doin my happy dance right now...if it does actually go 5% before March expir....wont be so happy
 
Quote from kalikahuna:

yeah, its pretty crazy, they had some economist on saying that this is just the beginning of a 5% drop within the next few weeks

anyways, I'm doin my happy dance right now...if it does actually go 5% before March expir....wont be so happy
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The only thing that concerns me at this point is how much foreign money is leveraged in from afar and will retract to cover margin requirements on damaged positions they hold in China and other foreign markets. The dollar is getting hammered too and that might also shake out some foreign interests in our markets to retract back.

But overall I think we are quite fine and it would not surprise me if given the foreign instability (risk) a lot of US investors also started to pull back their massive cash from foreign markets to back home in the good ol USA. The G7 trading partners are really more like a group of G20 or G25 due to the high global integration and global liquidity. Capital being very liquid will likely run around to find the best deals all over the globe. No doubt we will see some oscillation as things swing here and there. The name of the game right now I think is sustainable earnings and earnings growth which is "quality". Even if housing slows down ever more here the economy is still quite robust and resilient. Greenspan shot his wad very irresponsibly yesterday by acting as an oracle to predict a recession - he should be muzzled, or cloistered in a padded cell IMHO for attempting to undermine a very robust economy and hurt people's investments. GDP will be fine even when the revised numbers come out.


Oh, the other person asking about what positions I put on. With current volatility I'd rather not comment until things settle out so I don't influence someone coming into a position that could go bad. I don't want to make specific recommendations or be responsible for somone losing money. I will say that I also put on some RUT Put spreads right at the under support at 78. This one is a bit tight but I am reasonably comfy with the strength of the support.

Cheers and good trading,
TS
 
The New York Stock Exchange said it instituted trading curbs at 1:03 p.m.(1803 GMT) amid the plunge in the U.S. stock market.

woohoo - SPX pushed through its 50 day moving average. Will it try for the 100 day and threaten to eat my shorts? Hang 10 Baby!

hmmm, I wonder what margin levels most traders are extended to? If we get too much further and trigger stop losses and margin selling it could get ugly for a bit more.

Are foreign markets closed now? The clock and a good nights sleep are the best natural trading circuit breakers ; well that and the threat of private equity M&A pirates looking to cheery pick the low hanging fruit.

TS
 
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