SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Well the SPX has continued its move higher and now we have hte makings of an upward sloping price channel as seen in the chart below. That upward sloping line would indicate short-term resistance. In the bigger picture the upward sloping channel presens a nice sideways movement for theta to kick in. Since we have seemed to bounce off the top line, I will wait and hope for a move somewhat lower towards the lower end of the channel to enter my put positions for FEB if the premiums are good at the strikes I was looking at before (1190 or so).
I've freed up some BP which won't be available until mon...looking at the Feb 1345 call to short for a bear call spread....thinking we are toppy and next week could be a soft retracement (or not 
... ...it will be worth it only if I can get at least a .50 or .55 credit...I should probably just sit on my hands...I'll think about it over the weekend...sorry for the rambling...
... ...it will be worth it only if I can get at least a .50 or .55 credit...I should probably just sit on my hands...I'll think about it over the weekend...sorry for the rambling...Not sure if it will make it all the way back to 1260 or so but if it can move halfway back down the channel I can at least grab the 1180/1190 or 1200/1210 at the highest.
Quote from Synaptic:
Coming back into the 1260 range would probably permit the selling of the FEB 1165/1170 Puts for decent premium (I hope).
Right now the SPX broke out of the channel to the upside and the DOW still has room to test 11,000. I will just have to wait and take what the market gives me. If I do not get into a FEB posiiton so be it but with all this strength, I would be very hesitant to jump in front of the market with calls.