Tos traders, you may or may not be aware of a service TOS has with a Dr. Epps who also trades the Iron Condors on SPX, XEO, and others. This system is traded for you, not my cup of tea!! That being said, you can see his results posted on his web site, Wise Options.com. Pretty interesting stuff.
SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Coach,
I added some 1260/1265 call hedges today. Are you looking at putting on any call fly hedges right now?
I added some 1260/1265 call hedges today. Are you looking at putting on any call fly hedges right now?
Quote from optioncoach:
Looks like everyone who expects the year-end rally is simply buying into ahead of time which is, in effect, causing the rally. I had 1260 as a price target but it looks like it could hit it rather soon and then hopefully pause some lol. I am preparing myself for adjustments on the 1275/1280 calls and glad I am loaded on some partial hedges to offset my cost. I have been looking at teh 1300/1305 strikes to roll up to since the credit seemed worthwhile. To further cover the cost I may roll up and expand the number of contracts on the call side and then add more contracts on the put side as well. I still have more room in my average margin used so ratching up the margin will not take me out of my comfort zone but will help me adjust to the market surges. Sort of like moving the wall back and higher lol with still plenty of sand left to build with.
I would expect Wednesday and Friday to be relatively quiet since most people will be out travelling or shopping. Therefore, a nice pullback tomorrow would be nice leading into Thanksgiving. We are certainly due. If not then I will keep monitoring my hedges and look to adjust if we get above closer to 1260.
Since we are at 4 year highs and 1260 is my target, I do not have strong indications of the next resistance point so I will want more cushion up top.
Phil
No FLY hedges, I put on straight call hedges which I rolled into bull call spreads for no cost. The FLYs are not the best choice, I only do it when the cost of long options/spreads are too high for me. It is completely subjective I know, but given the movement in the market, I am avoiding FLYs right now.
Coach,
I'm showing the 1305 strike to have an open interest of 0. Is this correct?
I'm showing the 1305 strike to have an open interest of 0. Is this correct?
Quote from optioncoach:
Looks like everyone who expects the year-end rally is simply buying into ahead of time which is, in effect, causing the rally. I had 1260 as a price target but it looks like it could hit it rather soon and then hopefully pause some lol. I am preparing myself for adjustments on the 1275/1280 calls and glad I am loaded on some partial hedges to offset my cost. I have been looking at teh 1300/1305 strikes to roll up to since the credit seemed worthwhile. To further cover the cost I may roll up and expand the number of contracts on the call side and then add more contracts on the put side as well. I still have more room in my average margin used so ratching up the margin will not take me out of my comfort zone but will help me adjust to the market surges. Sort of like moving the wall back and higher lol with still plenty of sand left to build with
I would expect Wednesday and Friday to be relatively quiet since most people will be out travelling or shopping. Therefore, a nice pullback tomorrow would be nice leading into Thanksgiving. We are certainly due. If not then I will keep monitoring my hedges and look to adjust if we get above closer to 1260.
Since we are at 4 year highs and 1260 is my target, I do not have strong indications of the next resistance point so I will want more cushion up top.
Phil
George,
I think I offered an explanation for why this strategy might be viable for some even with low IV here:
http://www.elitetrader.com/vb/showthread.php?s=&postid=874893#post874893
Momoney.
I think I offered an explanation for why this strategy might be viable for some even with low IV here:
http://www.elitetrader.com/vb/showthread.php?s=&postid=874893#post874893
Momoney.
Andy,
Put calendars are a possibility. Looking at diagonals and back spreads too. Might even slap on a three month straddle or something if the price is right. I'm mulling over the "options"...more interested in trying to capture volatility than direction at the moment but who knows I may even throw some directional bias in there for a change.[EDIT] Sorry Phil. Off-topic.
Momoney.
Put calendars are a possibility. Looking at diagonals and back spreads too. Might even slap on a three month straddle or something if the price is right. I'm mulling over the "options"...more interested in trying to capture volatility than direction at the moment but who knows I may even throw some directional bias in there for a change.[EDIT] Sorry Phil. Off-topic.
Momoney.
I've found the same thing...in watching over a period of time its like the market gets "reasonable" the last 5 minutes of the day!