SPX Credit Spread Trader

Quote from optioncoach:

Hey Chris! Good to hear from you. yes this past week has been hectic and stressful lol.

Well I have never done it over 2 days but if the market moves lower the next day, the good news is you can get more credit than you would have gotten the day before. The risk is that the market moves higher and you get less than you hoped but sicne the overall goal was to adjust lower for more cushion, then the ends results is what matters I guess. But since you need the premium to come in, you want to sell another spread the next day, unless you see a huge drop coming in the futures. In that case, just wait a little and then you can go further OTM. Just reassess what is happening in the morning of the next day to decide what strikes and premiums to go after, if at all.

Phil
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Well, I had never done it over two days either. When I realized that I wasn't going to get the order off I sort of stared on the screen for a moment or two, wondering "now what do I do..." :confused:

I woke up this morning at 4:30 a.m. PST (7:30 a.m. your time ) to check the futures, fearing we'd see early upside. It worked out and my orders were filled, so I'm still in the game.

I'm looking forward to closing the books on October next week, but it has been an interesting ride this month.
 
I had Oct 1175/60, which I rolled out to 1140/25 last week. Put on more contracts so I didn't lose anything there.

Took a .40 loss rolling Nov 1160/50 to 1140/25 today. Holding my breath on some Oct 1160/45 puts.

I wouldn't mind some Oct scalps tomorrow, but am hesitant to add any November exposure right now. I don't think the market has seen near enough fear to say that we've put in a sustainable bottom.
 
Everyone is doing a great job in adjusting and staying on top of their positions! This has been a tough month. As I said there are usually 1 or 2 of these a year but you take the actions you are taking you can still have an annualized 15 - 20% return for the year. Even a 10% return would be great this year ;).

Today's late rally was nice given where we were at lunch. Hopefully it can signal a pop tomorrow.


Once OCT expiration is done, I would like to hear how you all fared if you do not mind sharing.

Phil
 
agreed. I was looking into more otm put spreads for november. I would like to see 1100/1110 or 1100/1115. I guess it won't happen until oct exp or if spx trickles down to near 1140
imho.

currently have 1125/1140 oct @0.7 and 0.65 spx @1210 and 1189
1125/1140 nov @ 1.3 spx @1204

newbie.
 
Let's see if 1180 holds after the opening and Michigan Consumer Sentiment at 10:30 AM....

Phil

<breathing a little easier but still 5 days to go.....>
 
Yes, this lack of November strike prices is most annoying.

I'm actually considering the 25 point spreads, because there may be some decent premium; that is premium relative to the 25 point spread.

Am I correct on this coach? It seems to me there isn't any difference in getting $1 for 10 point spread versus $2.50 for a 25 point spread. To get the same $2.50 I would put on 2.5 - 10 point spreads versus 1 - 25 point spread.

For example, the November 1100/1125 bull put might get around $2.00
 
Disclaimer: This could be totally bogus info but.....

A buddy of mine was also trying to open some Sept strikes in Aug that we're not open. He called either the cboe or the 1-888-options (OIC) and asked them to open up the strikes. They called down to the MM and opened them up. It doesn't hurt to try!
In fact if a couple people call, it might even be better. I'm game....

SD



Quote from rdemyan:

Yes, this lack of November strike prices is most annoying.

I'm actually considering the 25 point spreads, because there may be some decent premium; that is premium relative to the 25 point spread.

Am I correct on this coach? It seems to me there isn't any difference in getting $1 for 10 point spread versus $2.50 for a 25 point spread. To get the same $2.50 I would put on 2.5 - 10 point spreads versus 1 - 25 point spread.

For example, the November 1100/1125 bull put might get around $2.00
More...
 
I have called to get new strikes posted several times. In fact, the CBOE has it on its Phone Mail options. However, they have not become available until the next trading day.

Chip
 
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