SPX Credit Spread Trader

Well I never got the reasonable chip inserted into me but at 1190/1180 I would say that $0.60 seems reasonable based on experience alone. We have several leveles of support between here and 1190 but one punch gets us through some of those. I would be willing to do it but take $0.15 and invest in some partial hedges near 1220 if it were cheap enough ;). But I am saying this off the top of my head without looking at the quotes. Looking at it another way I would not mind putting 20% or so of the credit in some XSP or SPY puts or put spreads just for some protection and still grab 4% return.

Of course I would rather get the 4% return at 1165/1175 and not need any hedges but it certainly ain't up to me. I think a down day tomorrow will provide enough for me to grab something so I will wait in see. Nice not being in any hurry so I can make calm thought out decisions lol.


Quote from Synaptic:

What do you think is reasonable for the 1190/1180 ? .60?
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My 2 cents, and worth exactly that, is that there are many powers that be, from fund managers, corporate insiders, and even big gov. that wants to see Dow 11000. There will be cheering and celebrating on the floor, and the funds will be setting up their sheep for stronger bullish investment beginning Jan. The Bush administration, Alan Grinchspan, and wall street will all have a cheery holiday glow. Could very easily be wrong, but I love seeing if these money trail scenarios work.
 
I am sure that a lack of bad news will send many bulls running for 11,000 which is around 1275 on the SPX. If we break through and hold it then JAN could be very positive. Hence my reluctance to take any call spread positions. We could have setbacks but I think I can go far enough OTM to avoid them.


Quote from Extractor:

My 2 cents, and worth exactly that, is that there are many powers that be, from fund managers, corporate insiders, and even big gov. that wants to see Dow 11000. There will be cheering and celebrating on the floor, and the funds will be setting up their sheep for stronger bullish investment beginning Jan. The Bush administration, Alan Grinchspan, and wall street will all have a cheery holiday glow. Could very easily be wrong, but I love seeing if these money trail scenarios work.
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Does that mean you would shift up the PUT side of your IC to a higher position than you would in a normal summer trade month ?


Quote from Extractor:

My 2 cents, and worth exactly that, is that there are many powers that be, from fund managers, corporate insiders, and even big gov. that wants to see Dow 11000. There will be cheering and celebrating on the floor, and the funds will be setting up their sheep for stronger bullish investment beginning Jan. The Bush administration, Alan Grinchspan, and wall street will all have a cheery holiday glow. Could very easily be wrong, but I love seeing if these money trail scenarios work.
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In my trades for this month , I am slightly skewed to the bullish side, and I have no hedges in place except for my ability to properly adjust to the market moving against me. I hope to be flat by next Mon or Tues.
 
What trades do you have?

Quote from Extractor:

In my trades for this month , I am slightly skewed to the bullish side, and I have no hedges in place except for my ability to properly adjust to the market moving against me. I hope to be flat by next Mon or Tues.
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Today was a good one. Breakout failure. I was sweating for my 1280/1285 but I felt much better at 3:30PM . Consolidation to 1236 is very probable by next week. I am looking at putting my PUT spreads tomorrow or thursday on any down day.
 
Pic, I am a credit spreader, but this month, I went with slightly bullish flies on SPY. Did them cheap, and if I have to adjust they become condors. The 1280's make me nervous with the kind of risk involved, but wish you the best.
 
Quote from piccon:

Today was a good one. Breakout failure. I was sweating for my 1280/1285 but I felt much better at 3:30PM . Consolidation to 1236 is very probable by next week. I am looking at putting my PUT spreads tomorrow or thursday on any down day.
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1236 into XMAS? You're serious? Good luck with that one.
 
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