SPX Credit Spread Trader

Thjis was the down day follow through I was expecting a few days ago. We now have a new support line to drop to and see what happens when it hits that line. It is still earl in the day so no idea if this is where we will close. I grabbed those call spreads at the right time..... for now :)



ngrn0n.jpg
 
My Current Positions:

- 150 SPX 1185/1195 BOX Spreads (something funny about saying the words "box" and "spread" in the same sentence.)

Net Loss = $9,000 or $0.60


- 175 MAR SPX Iron Condors 1165/1180/1335/1350 @ $1.15

Credit = $20,125
Risk = $242,375
Return = 8.3%

NET RETURN (including BOX adjustment) = 4.6%
 
Coach,

I heard people talking about RUT; I never traded it; I have been working with OEX and SPX using my statistical and technical analysis. So far everything has been great. I support my technique with your hedging.
I have been making money in both hedge + spreads.

Yesterday I tried the RUT MAR 770/780 Call and I am already up 50% on this trade.

Everything has been going well on all SPX, OEX and now I add RUT for Small CAP. I found that RUT give very lucrative premium. I am waiting for later today to write the PUT Spread since RUT is getting oversold. I am just waiting for 1$ premium.

1$/Call + 1$/Put=2 for a margin of a spread of 10$=20% possible return. That's how lucrative RUT is.

Thanks a lot to this board. Now I can talk about 6 to 12% return a month at a minimum.

God bless

Quote from optioncoach:

My Current Positions:

- 150 SPX 1185/1195 BOX Spreads (something funny about saying the words "box" and "spread" in the same sentence.)

Net Loss = $9,000 or $0.60


- 175 MAR SPX Iron Condors 1165/1180/1335/1350 @ $1.15

Credit = $20,125
Risk = $242,375
Return = 8.3%

NET RETURN (including BOX adjustment) = 4.6%
More...
 
The RUT does certainly present additional opportunities. It moves differently than the SPX and OEX so spend some extra time studying the charts to see the range of movements in the months.

Quick looking at the chart with the RUT at 710, I would say the MAR RUT 640/630 Put Spread at $0.50 looks quite interesting. I am not ready to grab some RUT yet thought lol. Already got MAR committed.

Quote from piccon:

Coach,

I heard people talking about RUT; I never traded it; I have been working with OEX and SPX using my statistical and technical analysis. So far everything has been great. I support my technique with your hedging.
I have been making money in both hedge + spreads.

Yesterday I tried the RUT MAR 770/780 Call and I am already up 50% on this trade.

Everything has been going well on all SPX, OEX and now I add RUT for Small CAP. I found that RUT give very lucrative premium. I am waiting for later today to write the PUT Spread since RUT is getting oversold. I am just waiting for 1$ premium.

1$/Call + 1$/Put=2 for a margin of a spread of 10$=20% possible return. That's how lucrative RUT is.

Thanks a lot to this board. Now I can talk about 6 to 12% return a month at a minimum.

God bless
More...
 
Quote my short strike is at 650 => 650/640. 650 is below MA(50) and below MA(200). I think it's quite safe.

Quote from optioncoach:

The RUT does certainly present additional opportunities. It moves differently than the SPX and OEX so spend some extra time studying the charts to see the range of movements in the months.

Quick looking at the chart with the RUT at 710, I would say the MAR RUT 640/630 Put Spread at $0.50 looks quite interesting. I am not ready to grab some RUT yet thought lol. Already got MAR committed.
More...
 
Quote from piccon:

Yesterday I tried the RUT MAR 770/780 Call and I am already up 50% on this trade.
More...

Ahh, congratulations - 50% of profits in one day. If the market had moved against you though you could already be down 50% LOL. Perhaps think of it that way? RUT is nearly twice as volatile as XEO for example.


I found that RUT give very lucrative premium.
More...

Yes good fills. Listed on ISE,CBOE and AMEX I believe. 10 point wide strikes are a little limiting given the size of the index. Similar ROI for probability compared to XEO IMO. Good for diversification though.


Now I can talk about 6 to 12% return a month at a minimum.
More...

Minimum? Famous last words :) Is that return on account or margin? Good luck though and congratulations on results thus far.

MoMoney.
 
So which smart ones here went long as soon as I posted my graph showing today's bearish move and sentiment.....

C'mon people, I have 100% accuracy on contrarian calls...how much free money are you gonna pass up!
 
I'm still in the process of back testing...but will definitely start forward testing your calls as of next month. Do I have to pay?

As per the fund mentioned earlier, in addition to directional plays can you arrange for the market to sit still instead?

I have a 565/575/585 XEO fly and it's right at the sweet spot but a week too early. Grrrrr...that's why I'm cranky.

Quote from optioncoach:

So which smart ones here went long as soon as I posted my graph showing today's bearish move and sentiment.....

C'mon people, I have 100% accuracy on contrarian calls...how much free money are you gonna pass up!
More...
 
Ok.. can do! Here ya go...


The market is gonna be wild this week, I am considering hedging my already closed FEB positions to protect myself from the wild swings we will see going into FEB expiration.







[there that ought to keep the market quiet for a week]
 
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