SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
I use both 15 and 10 point spreads. I have no preference for one over the other. I look for the best premiums and returns for the strikes and look at both types.
Phil
Phil
Andy: What are you trying to get filled. I just looked at the actual contract sizes for the b/a I posted earlier. For the 1310, the contract sizes are over 50. But for the 1300, the contract sizes are 5 or less (on the b/a just for this leg). I'm trying to get 10 contracts filled, so I guess the problem for me is that the 1300 b/a is not really relevant since the contract sizes offered are less than I want. If I could see b/a for other larger contract sizes, then maybe I would have a better idea of the relevant midpoint for the trade I'm trying to place.
Coach: Do you agree with what I'm saying here? I don't really know for sure, I'm just speculating.
Coach: Do you agree with what I'm saying here? I don't really know for sure, I'm just speculating.
Because of the hard charging market today I decided to get out my lucky rabbit's foot , a few four leaf clovers and started bowing to the gods of resistance to help protect my 1250/1260 spread ;-)
If that doesn't work, I may have to start the sacrifices! Sacrificing my hard earned dollars that is. Come on time decay!
ryan
If that doesn't work, I may have to start the sacrifices! Sacrificing my hard earned dollars that is. Come on time decay!
ryan
I too am praying to the gods!! I have a Sep 125/119 Condor on SPY. I'm trying to sell 5 Oct 127/128's for 0.25 a contract.
As a followup on my post with regards to the b/a and splitting this to get filled on the SPX Oct 1300/1310, here is some new information.
With the SPX still up over 9 points the b/a is 0.05/0.65. Before it was 0.05/1.05, but only 2 contracts were bid for the 1300 while 53 were offered at the much higher individual leg price.
Now at the lower b/a there are over 50 on each side of the individual 1300 leg. So this seems to me like the explanation for why I didn't get filled at $0.45. Only a bid for 2 contracts was willing to pay the higher asked for price to sell the 1300. Now it is much lower and there are many more contracts bid. So it looks like the mid is $0.35 and since I'm still asking for $0.45, I can expect not to get filled.
With the SPX still up over 9 points the b/a is 0.05/0.65. Before it was 0.05/1.05, but only 2 contracts were bid for the 1300 while 53 were offered at the much higher individual leg price.
Now at the lower b/a there are over 50 on each side of the individual 1300 leg. So this seems to me like the explanation for why I didn't get filled at $0.45. Only a bid for 2 contracts was willing to pay the higher asked for price to sell the 1300. Now it is much lower and there are many more contracts bid. So it looks like the mid is $0.35 and since I'm still asking for $0.45, I can expect not to get filled.
Well today's little bump through 1240 got me nervous on my 1250/1260 call spread so I had to take some action today. I was a wild hour or so waiting to get fills lol.
Reminder of my current positions:
- 150 SEP SPX 1140/1155 Put Spread @ $0.55
- 150 SEP SPX 1270/1285 Put Spread @ $0.30
- 110 SEP SPX 1165/1175 Put Spread @ $0.95
- 110 SEP SPX 1250/1260 Put Spread @ $0.25
Here is what I did today:
1. Closed my puts for profits:
BTC SEP SPX 1140/1155 Put Spread @ $0.25 NET Profit = $0.30
BTC SEP SPX 1165/1175 Put Spread @ $0.20 NET Profit =$0.75
2. Rolled up to puts at higher strike to take in credit:
STO 150 SEP SPX 1185/1200 Put Spread @ $0.15
3. Rolled up my SPX 1250/1260 Call Spread to get more room:
I decided to play it safe and roll the whole spread up to 1255/1265. I did this as a leg in because I wanted to see if I could do it better than a spread roll.
I bought back the 1250 Call and rolled to 1255 for debit of $1.20
I sold the 1260 Call and rolled to the 1265 Call for credit of $0.25
So the roll of the entire spread cost me ($0.95).
Ok 4 months of no adjustments so we finally got one for me to put the risk management plan in action lol.
Let's review what I did:
1. Closed all puts for net profits of $1.05
2. Sold more puts for net credit of $0.15 (this I intend to let expire worthless)
3. Rolled my 1250/1260 to a 1255/1265 spread for net cost of ($0.95)
Adding profits and credits to net cost leaves a TOTAL NET CREDIT of $0.35!
So making the adjustments gives me more breathing room and as of right now, still leaves me with a NET PROFIT for my actions. I still have my 1270/1285 Call Spread which I will also allow to expire worthless for a net credit of $0.30.
So overall I should end next thursday with a net credit of $0.65 as long as no further adjustments are necessary.
This is an example of the risk management approach I was talking about where I try to control my risk and still earn a profit. If the market moves higher above 1245 resistance then I reevaluate again. But I feel I can rest easy now with more breathing room.
This may be hard to follow but basically the steps are first close all puts to grab that premium. Second add more puts at higher strikes to collected even more premium. Third roll up your short call spread for more room.
Took some time today given I was spplitting b/a spreads as best as I could all over but in most cases for the sake of protecting risk, I shaved more of the middle then I normally would
Let's hope the 1245 bears come in and push us back below 1240.
Phil
Reminder of my current positions:
- 150 SEP SPX 1140/1155 Put Spread @ $0.55
- 150 SEP SPX 1270/1285 Put Spread @ $0.30
- 110 SEP SPX 1165/1175 Put Spread @ $0.95
- 110 SEP SPX 1250/1260 Put Spread @ $0.25
Here is what I did today:
1. Closed my puts for profits:
BTC SEP SPX 1140/1155 Put Spread @ $0.25 NET Profit = $0.30
BTC SEP SPX 1165/1175 Put Spread @ $0.20 NET Profit =$0.75
2. Rolled up to puts at higher strike to take in credit:
STO 150 SEP SPX 1185/1200 Put Spread @ $0.15
3. Rolled up my SPX 1250/1260 Call Spread to get more room:
I decided to play it safe and roll the whole spread up to 1255/1265. I did this as a leg in because I wanted to see if I could do it better than a spread roll.
I bought back the 1250 Call and rolled to 1255 for debit of $1.20
I sold the 1260 Call and rolled to the 1265 Call for credit of $0.25
So the roll of the entire spread cost me ($0.95).
Ok 4 months of no adjustments so we finally got one for me to put the risk management plan in action lol.
Let's review what I did:
1. Closed all puts for net profits of $1.05
2. Sold more puts for net credit of $0.15 (this I intend to let expire worthless)
3. Rolled my 1250/1260 to a 1255/1265 spread for net cost of ($0.95)
Adding profits and credits to net cost leaves a TOTAL NET CREDIT of $0.35!
So making the adjustments gives me more breathing room and as of right now, still leaves me with a NET PROFIT for my actions. I still have my 1270/1285 Call Spread which I will also allow to expire worthless for a net credit of $0.30.
So overall I should end next thursday with a net credit of $0.65 as long as no further adjustments are necessary.
This is an example of the risk management approach I was talking about where I try to control my risk and still earn a profit. If the market moves higher above 1245 resistance then I reevaluate again. But I feel I can rest easy now with more breathing room.
This may be hard to follow but basically the steps are first close all puts to grab that premium. Second add more puts at higher strikes to collected even more premium. Third roll up your short call spread for more room.
Took some time today given I was spplitting b/a spreads as best as I could all over but in most cases for the sake of protecting risk, I shaved more of the middle then I normally would
Let's hope the 1245 bears come in and push us back below 1240.
Phil