SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
To quote Gordon Gekko..... Greed is good! lol.
I think you will be ok with the 1225 strike and two calendar weeks to expiration. There is slight weakness in the market but nothing visable that fortells a 40 point drop. As you know I have the 1220 short strike and will just let it go to expiration although I am placing a BTC order at even since I am looking towards JAN.
Today I might grab some JAN puts.
I think you will be ok with the 1225 strike and two calendar weeks to expiration. There is slight weakness in the market but nothing visable that fortells a 40 point drop. As you know I have the 1220 short strike and will just let it go to expiration although I am placing a BTC order at even since I am looking towards JAN.
Today I might grab some JAN puts.
Since I'm going to be traveling this week, I decided to bail out of my bear calls for December. I feel that since I was fighting the trend, I'm lucky to have lost only as much as I did (thanks for talking me down last week, Coach, you saved me a lot of money).
Assuming my bull puts expire worthless I'm looking at a 1.5% loss on margin for December, which is acceptable since I fought the trend [guess what my lesson learned this month is
].
My stress level is now a lot lower and I'm ready to look onwards to January!
Assuming my bull puts expire worthless I'm looking at a 1.5% loss on margin for December, which is acceptable since I fought the trend [guess what my lesson learned this month is
].My stress level is now a lot lower and I'm ready to look onwards to January!
1165/1175 looks interesting if you can get $0.50 ...85 points OTM with a flat to strong January coming potentially and a little boost from any late DEC rallies. We have support at the 1245-ish last breakout and previous support levels between that and 1175. I will watch it and see...
If I had a DEC 1220/1205 Bull Put Spread and then opened a 1280/1295 Bear Call Spread WEEKLY , I would be margined only $1,500, right?
TOS has allowed weeklies to be sold against longer-term SPX options and treat them as covered in, for example, a diagonal. However with credit spreads, I am not sure if they will match both together since technically you CAN lose in both of them where as a typical IRON CONDOR only one can be ITM at a time at expiration. With the DEC SPX and weekly credit spread, you can lose money on the weekly at expiration and then on the DEC SPX at expiration so the broker may not treat them together as an IC but as two separate credit spreads.
Coach:
Any chance you might try legging in to a call spread. I'm thinking buy the January 1325 and then if the market goes up it's profitable. If the market goes down, convert to bear call. Given the uptrend this could work. I guess the problem is knowing when to convert to bear call so that there's at least some credit.
Donna: I know you did something similar in November. Are you considering this for January?
Any chance you might try legging in to a call spread. I'm thinking buy the January 1325 and then if the market goes up it's profitable. If the market goes down, convert to bear call. Given the uptrend this could work. I guess the problem is knowing when to convert to bear call so that there's at least some credit.
Donna: I know you did something similar in November. Are you considering this for January?