SPX Credit Spread Trader

Future now down 2.50. It is such a thin market in the after hours for the ES futures I pushed the b/a myself! I was a little restless so I decided to test something with just 1 contract and put in order to buy at the bid of 1179.75 and it was filled shortly after. Then to see if I could move the market I immediately put a sell order in at the ask of 1180. It hit in about 6 minutes lol. Volume is 4 for the time period I traded. Anyway I was just having some fun. After commissions my experiment netted by $4.00. I had a banner day trading the futures due to the wild price swings so I was drunk with power.

I now take you back to your regualrly scheduled programming....

Phil


Quote from Opspread:

Hi all, anyone contemplating early adjustments for tomorrow?

S&P futures already near -3.00 and Nasd -8.00 for mornings open.

My closest spread to 1178 spx is Nov bull put at 1130/1140. Another nasty day or two like today and there is a good chance I may soil my underwear!

This early in option cycle, being this close to the underlying is worrisome. I hate to say this, but those of you who got those 1240 bear calls are looking pretty good right now.

And Where is this 4th qtr rally?? If there is a rally, we'll be lucky if it rallies to 1200 with the hole the mkt's digging for itself.

Take care,

Jerry :confused:
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My first step might be a partial hedge using the mini-SPX as I was looking at different choices today. I will be more inclined to adjust if we get near 1170 but I want to finance it first with some long puts or put spreads.

If we have an up day I may still grab the hedge at cheaper prices.

Phil

Quote from rdemyan:

Hi Jerry:

I have the 1130/1140 as well, but I think it's too early to get really worried, although we do have to keep our eye on the situation.

Coach has a position that's closer to being a problem, I think around 1150/1160. We can watch and learn from what he does as he will in almost all cases have to adjust or do something before we will have to (excluding a black swan event). Hopefully, the market will move back up a bit (although not enough to threaten my 1240/1250) and we'll all be okay.

Good luck to you.
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Coach,

My current values for November Iron Condor positons:

SPTWF SPX NOV 1130 Put $4.30 $4,300.00 -1,700.00
SPTWH SPX NOV 1140 Put $5.40 ($5,400.00) 1,900.00

SZPKH SPX NOV 1240 Call $0.65 ($650.00) 800.00
SZPKJ SPX NOV 1250 Call $0.40 $400.00 -350.00

For a week and a half.... it's not a bad profit, approximately 10%. Although I feel comfortable right now... the latest news and increase in volatility has me thinking.

Is this an opportunity to double up on some more Puts?

Roll down calls?

Close entire position and re-tool for Dec?

I'm open for suggestions,

~ ~ _/) ~
 
Quote from gatorplease:

I wonder how all those guys who were so vocally in opposition to credit spreads are doing with their call debit spreads they bought. I'm thinking PAIN!

I'll stick to what I know. Like to learn more. Like how to have done a debit put play.
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Pain, yes, but ONLY if they just bought calls/call spreads and did not attempt to go delta-neutral.

Sell overpriced (acc to vol) puts/buy underpriced (acc to vol) calls + sell underlying=long-term profits.

It is sometimes called volatility trading. Natenberg has a section on it.

Tends to produce more GAIN than PAIN/:-)
 
Quote from optioncoach:

Future now down 2.50.

Phil
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Is there a web site that has free futures quotes (delayed is fine)? I always see CNBC and others list the futures on screen before the market opens but I don't know where they are getting their information. I've gone to www.cme.com and see that the S&P is +225 or something like that, not sure what to make of that information. I'm just curious as to where this information comes from.

ryan
 
This is the link I use. Outside of regular trading hours, the yellow symbol shows the pre-market levels. Hope this helps.

http://money.cnn.com/data/markets/index.html

Chip



Quote from ryank:

Is there a web site that has free futures quotes (delayed is fine)? I always see CNBC and others list the futures on screen before the market opens but I don't know where they are getting their information. I've gone to www.cme.com and see that the S&P is +225 or something like that, not sure what to make of that information. I'm just curious as to where this information comes from.

ryan
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Thanks for the post for those who want to follow the futures. If you have ToS, they show the futures quotes around the clock which can be traded. I see them also live through TradeStation. The real trading usually kicks in between 6 - 7 AM so if you just turn on CNBC at 6:00 you can follow them there as well throughout the morning until theopening.

Phil

Quote from Chipper7:

This is the link I use. Outside of regular trading hours, the yellow symbol shows the pre-market levels. Hope this helps.

http://money.cnn.com/data/markets/index.html

Chip
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Coach:

Are you considering any bear call spreads before the weekend is upon us and theta kicks in even more?

I'm considering a 1240/1255.
 
I would love to have the insitutional costs and clout to make those kind of scalp trades!

Phil

Quote from smilingsynic:

Pain, yes, but ONLY if they just bought calls/call spreads and did not attempt to go delta-neutral.

Sell overpriced (acc to vol) puts/buy underpriced (acc to vol) calls + sell underlying=long-term profits.

It is sometimes called volatility trading. Natenberg has a section on it.

Tends to produce more GAIN than PAIN/:-)
More...
 
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