SPX Credit Spread Trader

Phil,

Just posting results for Oct. as you requested.

SPX credit spread / iron condor established on different dates by legging.

1280/1290C : .60 credit
1140/1150 P : .60 credit

Closed both positions three weeks later for .05 each, then reopend new positions legging in on major market moves in the past week.

1140/1150 P : 1.10 credit
1220/1210 C : .45 credit

These expired worthless.

Total credit after adjustements was $2.65 less commissions.

Learned that patience on fills and filling on big down/up days brings in great premium.

Murray
 
Current NOV SPX credit spread position.

SPX 1130/1140p for $1.30

Call spread entry plan:

will wait for a move up to 1200 before placing call side of spread.


Murray
 
Quote from optioncoach:

That is what would lead me AWAY from IRON CONDORS as an opening position right now and I would only leg into them if conditions warranted. For now all I am looking at really are put spreads for NOV, deep OTM. But not today since it is an upday. I may look at calls once SET is finished for today but would be looking at around 1265 or so for more cushion.

Phil [/B]
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Hi Coach,

I understand that you only look into selling put spreads when there is a move downward. Why? There is nothing to prevent further downward move after you sell, right? Why don't you treat the price movement as random and just sell without predicting market direction? Same with opening condors. Many will leg into them. If you backtest them, do you find and edge if you leg in? Only if you get the direction right, I think. And that is a big if.

Thanks
 
Quote from LoosenUp:
Hi Coach,
Why don't you treat the price movement as random and just sell without predicting market direction? Same with opening condors. Many will leg into them. If you backtest them, do you find and edge if you leg in? Only if you get the direction right, I think. And that is a big if.



Interesting thought. TOS recommends placing IC's as opposed to legging in. Not sure which is better, but I have had a more difficult time getting filled on the IC as opposed to legging.

FWIW
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It is not that I am trying to predict the price movement, you just get better fills on puts on down days at better premium. So it is not written in stone but I prefer to get in on the put legs when the market is down and the calls when the market is up but I have entered positions based on just wanting to get in. But if I enter into puts now for NOV, I will most likely wait for some upday in the next week to add the calls.

It is just trying to get the best premium I can.

Phil


Quote from LoosenUp:

Hi Coach,

I understand that you only look into selling put spreads when there is a move downward. Why? There is nothing to prevent further downward move after you sell, right? Why don't you treat the price movement as random and just sell without predicting market direction? Same with opening condors. Many will leg into them. If you backtest them, do you find and edge if you leg in? Only if you get the direction right, I think. And that is a big if.

Thanks
More...
 
I think it is a personal preference. I do not put on the IC all at once because I am not married to Iron Condors, only to credit spreads. So I may only take one side of the market. If the market has some nice swings I can leg into the other side so I like to leg in and just follow the market.

Phil

Quote from nlslax:

Quote from LoosenUp:
Hi Coach,
Why don't you treat the price movement as random and just sell without predicting market direction? Same with opening condors. Many will leg into them. If you backtest them, do you find and edge if you leg in? Only if you get the direction right, I think. And that is a big if.



Interesting thought. TOS recommends placing IC's as opposed to legging in. Not sure which is better, but I have had a more difficult time getting filled on the IC as opposed to legging.

FWIW
More...
More...
 
Phil,

As requested I'm posting my net results for trading October contracts on the SPX. The details of the month's trading are documented on my site, but the short version is that my final position after adjustments was a 1,155 / 1,140 bull put spread, a 1,145 / 1,130 bull put spread, and a 1,210 / 1,225 bear call spread, which produced a net credit after adjustments (but before commissions) of $1.30. That final position was held through expiration for a return of about 9.4% for the month, before commissions.

Considering the month we had, I'm pleased with the end result.

Chris
 
Quote from optioncoach:

SET = 1183.79

Yaaaaaaaaaaaaa
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WOW - It's been a wild ride this week for me. I was busy traveling the back roads of East Texas and out of touch with the rest of the world during the day and only access the internet at night in the motel. I had a 10 Oct 1165/1180 spread on that saw some wild swings this week. I vowed that after this week I will only put credit spread trade on when I know that I will have access to the market and a computer. I have to say - its been exciting - but I prefer it to be boring and just rake in the 5 to 6% profit each month.
Hootie
 
For the record, I had the 1125/1140 put spread and received a credit of .65.

Lesson learned - Don't be greedy with your nickels when you have a good profit and are trying to get out. I could have gotten out at .15 a couple weeks ago before the big dive down and then I would have had the margin to enter some November spreads after the big dump (which would have been the perfect time to do so). Instead I held out for .10 and got no fill.
 
Great return for the month. Shows you that even with an adjustment you can still have a good profit. Of crouse you always have to be aware of continued price moves against you.

Congrats. OX is still taking time to update expired posistions so I am waiting to get the actual numbers to post instead of by hand since I had a lot of positions.

Phil


Quote from chrdso:

Thanks coach for sharing this strategy.



Just posting results for Oct. as you requested.

xeo iron condor established on different dates.

565/575 C : .90credit
545/535 P : .50 credit

Rolled down to 540/530 using a condor for .90 debit
545 B
540 S
535 S
530 B

Return for Oct. is 5% (not counting commissions). 3.7% with comm.
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