SPX Credit Spread Trader

Called yesterday to have additional options added for January.

SPX 1295, 1305, 1320

I was pleased to see that they have all been added this morning. My experience with having option strikes added upon request has been very good. A lack of suitable strikes shouldn't really be an issue any more.

Number to call is 1-888-OPTIONS
 
Anybody out there?

I'm thinking about adjusting my 1285/1300, but it's gonna be ugly.

It's a relatively light volume day and the conventional wisdom is that it is retail traders driving the market higher.
 
There are a ton of signs and analysts that agree with coach that we are due for early dec correction. I also have the 1285/1300 and am working on a plan...thinking before I actually adjust I may open a 1300/1310 spread and hope we don't reach 1285 before the 1st week in Dec..then assuming when and if there is a correction use that opportunity to widen the put side and buy back the 1285 (will probably lose some but not as much as buying back now or the next few trading days.) Remember as soon as we get into Dec then time becomes our really close friend:p good luck with yours!


Quote from rdemyan:

Anybody out there?

I'm thinking about adjusting my 1285/1300, but it's gonna be ugly.

It's a relatively light volume day and the conventional wisdom is that it is retail traders driving the market higher.
More...
 
Hi Donna:

You're thinking about selling a 1300/1310 credit spread? That would give you effectively a credit spread of 1285/1310. So I'm not sure I see how this helps. Can you provide some more details.


EDIT: How about rolling out towards January or is this too risky.
Thanks.

Quote from DonnaV:

There are a ton of signs and analysts that agree with coach that we are due for early dec correction. I also have the 1285/1300 and am working on a plan...thinking before I actually adjust I may open a 1300/1310 spread and hope we don't reach 1285 before the 1st week in Dec..then assuming when and if there is a correction use that opportunity to widen the put side and buy back the 1285 (will probably lose some but not as much as buying back now or the next few trading days.) Remember as soon as we get into Dec then time becomes our really close friend:p good luck with yours!
More...
 
I'm tempted to get into the 1310/1320 call spread for about .50 (don't want to go less than that). With little trading and volume expected on Friday that gives us 4 days of time decay until trading resumes on Monday. The strength of the move up has kept me from pulling the trigger though.

ryan
 
sure...thats just step one...extending the spread..(also buying back the put 1165/1180) step 2 is then tightning (roll the 1285 to say 1295) when/if mkt corrects...then my spread would be say 1295/1310... at the same time open another put spread say 1200/1225 (or that neighbohood) to help offset the cost of rolling up the 1285....make any better sense? I would definitely not roll to Jan will eat a loss instead.

Quote from rdemyan:

Hi Donna:

You're thinking about selling a 1300/1310 credit spread? That would give you effectively a credit spread of 1285/1310. So I'm not sure I see how this helps. Can you provide some more details.


EDIT: How about rolling out towards January or is this too risky.
Thanks.
More...
 
I didn't realize you could get as much as .50... I'll look at it Friday...not really going to sweat today...:) Happy Turkey Day to all


Quote from ryank:

I'm tempted to get into the 1310/1320 call spread for about .50 (don't want to go less than that). With little trading and volume expected on Friday that gives us 4 days of time decay until trading resumes on Monday. The strength of the move up has kept me from pulling the trigger though.

ryan
More...
 
Coach:

Maybe you can provide your perspective and experience on the following suggestion.

Say I decide that the 1285/1300 bear call for Dec is now a bad trade. Say I have enough margin to roll this to future months until I can break even and get out or make money. So I'm going to nurse one trade (and one trade only) forward to try and minimize losses.

So maybe the 1285/1300 gets rolled to a January 1305/1320. The mids are just about the same. If it's still bad in January maybe roll forward to February or throw in the towel.

I'm thinking that if one has enough margin to just "nurse" one bad trade until hopefully one can get out.

What do you think?


Quote from DonnaV:

sure...thats just step one...extending the spread..(also buying back the put 1165/1180) step 2 is then tightning (roll the 1285 to say 1295) when/if mkt corrects...then my spread would be say 1295/1310... at the same time open another put spread say 1200/1225 (or that neighbohood) to help offset the cost of rolling up the 1285....make any better sense? I would definitely not roll to Jan will eat a loss instead.
More...
 
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