SPX Credit Spread Trader

Kind of like the contrarian indicator which occurs anytime I put on a partial hedge... If you just traded the opposite direction whenever I placed a partial hedge... lol

Phil

Quote from ryank:

To all of you short the 1240 call, I got out today and the market instantly started to fall. You are welcome lol!

ryan
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I looked at some hedges but decided I was just going to pull out because of the strength these last few moves have shown. I may just go long with a call spread the way things are going (long is a 4 letter word on this board isn't it? ;->)

ryan


Quote from optioncoach:

Kind of like the contrarian indicator which occurs anytime I put on a partial hedge... If you just traded the opposite direction whenever I placed a partial hedge... lol

Phil
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Nothing is verbotten, just losses....

Quote from ryank:

I looked at some hedges but decided I was just going to pull out because of the strength these last few moves have shown. I may just go long with a call spread the way things are going (long is a 4 letter word on this board isn't it? ;->)

ryan
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I don't have any profit for now. 1629 is multi year resistance. NDX moves pretty wild. It's way overbought but this market is not looking back at all the way I see it.


I have 6 NDX1650/1660 for 2.50 credit. I am down now. I don't like to cover on Thursday or Friday. I am waiting for Monday so I can get some time decay.

Should I buy the NDX 1630 as an hedge?

Please let me know


Quote from optioncoach:

Well I do not follow the NDX but it is currently at 1622 which gives you room to either roll the spread up or add partial hedges. There is no direct hedging factor because you cannot fully hedge such a position with long calls as you would wipe out all credit and possible take on a bigger loss. One way to provide a partial hedge is to take a % of your credit and put it in long calls or long call spreads below your short strike. This way if the market continues to move higher you have some profit to offset a possible adjustment or closing of the position.

I am not aware of the scale of moves on the NDX so I do not know if 28 points is close or far from your short strike relative to past moves. Also I do not know any support or resistance like I do with SPX, i.e., 1225 is a resistance level where the market may pause or retrace some.

Sorry but since I am not familiar with that index I do not want to give you bad advice. If the index looks to you like it could easily blow through your short strike then adjusting higher to give you more room and take advantage of last 2 weeks of decay on a pause or pullback may be reocmmended. Adding partial hedges using MNX or other Nasdaq options could also cushion the blow. It is always better to take a small loss by choice then be forced to take a large one. Again, I am not sure if 1622 is close or far to 1650 according to moves on that index.

Phil
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Cody:

Here are my current positions:

- 90 SPX NOV 1150/1160 Put Spreads @ $0.65

- 300 SPX DEC 1135/1140 Put Spreads @ $0.30


I closed the other put spread I had for NOV at the 1100/1115 strikes to free up margin for DEC.

Basically I am in put only mode as I am bullish the rest of the year. I do not want to get aggressive and add calls because I simply want to add to my returns and not put them at higher risk. Remember the caution I kept stressing about adding calls for NOV at 1240? Still may turn out ok but after today's run up it is getting close with 2 weeks left. Got to be careful about not remembering what the overall market is doing and NOV is usually a good month.

So for now and DEC I am in puts only. I only used a portion of my margin for DEC so I will grab more premium when the opportunity presents itself, perhaps a nice down day or pause in the market. We will most likely bounce back off of the 1220/1225 resistance for a day or so. I will watch to make sure we do not run back to 1200 and look for some additional puts.

My goal is to just coast casually into the end of the year to protect my returns for the year and simply add a few more percentage points to the 24.1% return. Got to be careful of scaling up to fast just because of a string of success or moving well beyond your comfortable margin limit.

Phil





Quote from codyhopkins:

Coach,

Can you update us on the next step.

Thanx

Cody
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Are you sure it is 1650/1660, I only see the 1640/1650 call strikes for the NDX? Moreover, NDX is down to 1617 and I agree that we are overbought. SPX bounced off resistance and it look like it is holding for now. Just want to confirm I am looking at the right strikes?

Phil


Quote from piccon:

I don't have any profit for now. 1629 is multi year resistance. NDX moves pretty wild. It's way overbought but this market is not looking back at all the way I see it.


I have 6 NDX1650/1660 for 2.50 credit. I am down now. I don't like to cover on Thursday or Friday. I am waiting for Monday so I can get some time decay.

Should I buy the NDX 1630 as an hedge?

Please let me know
More...
 
Yes.

NDVKM/NDVKN 1650/1665

I am going to leve it as is for now. I will wait next couple days

Thanks


Quote from optioncoach:

Are you sure it is 1650/1660, I only see the 1640/1650 call strikes for the NDX? Moreover, NDX is down to 1617 and I agree that we are overbought. SPX bounced off resistance and it look like it is holding for now. Just want to confirm I am looking at the right strikes?

Phil
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Coach,


If you had the xeo 565/570 bear call spread,

would you roll now to the 570/575
close 565/570
wait till Monday (more time decay to roll)?


Thanks
 
Quote from optioncoach:

I would love to have the insitutional costs and clout to make those kind of scalp trades!

Phil
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Phil:

Do Institutional option traders get better pricing on transactions than what is available to retail traders like OX, ToS, or IB?? If so, what kind of level allows institutional designation? Do you know of any institutional option brokerages?

Thanks
 
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