SPX Credit Spread Trader

First step, compare the debit to close the call spread position v. the total credit of adding the credit put spread. Then we can take it from there :)


Quote from rdemyan:

Coach:

It looks like I put on a 1320/1335 March bear call at the absolute worst time. Market immediately started going up, thereafter, and hasn't stopped since. I may rival you as a contrarian indicator.

Anyway, I wanted to get your preliminary opinion on the "box" strategy. Is it worth my spending a lot of time to understand since I may need to do something shortly.

I'm pressed for time this week, so I was hoping you might help filter my options for trying to hedge/protect my position. :)

Thanks.
More...
 
It always seems like you put the calls on right when the market is about to surge. For now I am not looking to any adjustment or follow-up action unless we break the recent high in early January. Since I am at 1335 I still have some cushion. I am hoping that if it gets close to that we at least eat another week or two with some back and forth.

Dell announces tonight which could gives us another move one way or another. But also remember that for now, the DOW and S&P are off the highs and not showing real strength. Let's see what happens as we move in to the close.
 
Our company previously used Dell server equipment and switched over to all HP this year as they offered the AMD Opteron processors in a couple of their mainstream servers and Dell would not (most likely a pricing agreement with Intel). Our testing showed the AMD processors were MUCH faster than the equivalent Intel processors .... Dell most definitely took a hit in the server market the last couple of quarters due to this issue, so I would not be surprised that they come in under expectations.

Quote from optioncoach:

It always seems like you put the calls on right when the market is about to surge. For now I am not looking to any adjustment or follow-up action unless we break the recent high in early January. Since I am at 1335 I still have some cushion. I am hoping that if it gets close to that we at least eat another week or two with some back and forth.

Dell announces tonight which could gives us another move one way or another. But also remember that for now, the DOW and S&P are off the highs and not showing real strength. Let's see what happens as we move in to the close.
More...
 
Donna,

You seems to make good call on the timing. I was thinking about putting DIA call credit 111/112. What does your crystal ball say ?

Quote from DonnaV:

Donna update...well haven't a clue but my basic mkt bias is to the upside..there are a lot of bears but bulls seem to be in control. Less fearful of a downside Have current orders...sell 25 1190puts at whatever the hell credit I can get:p....doing a 1235/1250 call credit....again whatever credit I can get. (trying for .50)
Filled on a single Long call (10 contracts) 1225 of 1.95 which will be a spec/hedge

will update on fills eod...got to run
More...
 
Quote from skanan:

Donna,

You seems to make good call on the timing. I was thinking about putting DIA call credit 111/112. What does your crystal ball say ?
More...

However I haven't gotten filled on my call side. Thats even after offering .10 to the MM:( I'm going to go back to the drawing board.....I had just been feeling that March will be kinda up month given that we have basically gone sideways to slightly down this month. We could still go lower but March being the first of spring always brings out hope in people and optimism so baring any really bad news I just think there is less resistance upside than down...again what the hell do I know:D

oh...and if that is a credit spread for March I think your living dangerously!!! GL though
 
Quote from DonnaV:

However I haven't gotten filled on my call side. Thats even after offering .10 to the MM:( I'm going to go back to the drawing board.
More...

I'm not getting anywhere with my 1335c/1345c spread. I started at .05 under the mid and now with the market up the mid has actually dropped a little. I will wait it out, if not filled today (which I don't expect) I will be back at the drawing board myself.

ryan
 
If the SPX closes at the high today what might that indicate for the set tomorrow? I'm thinking the momentum may continue through extended hours and set could be higher than todays close. Has anyone here studied this?
 
Let's see what earnings report news we have in the after hours. If it is negative it could result in down futures in the morning which could pull SET down below today's highs. If we have an up morning than SET will be higher. My guestimate right now is no more than 5 - 7 points in either direction since we have had light openings these past few days and it is the day before a long weekend. Most likely people might not be loading up before a long weekend, especially when the U.S. chances at a gold medal in any skiing event is dwindling away.
 
Quote from ryank:

I'm not getting anywhere with my 1335c/1345c spread. I started at .05 under the mid and now with the market up the mid has actually dropped a little. I will wait it out, if not filled today (which I don't expect) I will be back at the drawing board myself.

ryan
More...

well...I actually did (just) get filled...1335/1350calls for .55 so may be you will too. There was hugh OI at 1350 so mine might have been easier to fill. This am i got only 1.15 for my 1190 but as Murray pointed out my 1175 is a wasting asset and since I've changed my bias (and got tired of waiting for the "big"down that never happened) I'll take it.
 
Quote from DonnaV:

well...I actually did (just) get filled...1335/1350calls for .55 so may be you will too. There was hugh OI at 1350 so mine might have been easier to fill. This am i got only 1.15 for my 1190 but as Murray pointed out my 1175 is a wasting asset and since I've changed my bias (and got tired of waiting for the "big"down that never happened) I'll take it.
More...

I didn't get filled. I left my order open during the aftermarket somewhat hopeing Dell would report good numbers and push the mid up and hit my offer. Didn't happen though, oh well. I will look things over again and see what I can do tomorrow. Probably a slow day at the market tomorrow so it might be tough to get a good fill.

I'm with Coach, probably looking at an upward moving SET with the Dell news and no major earnings before the open Friday. Not a big move though.

ryan
 
You must log in or register to reply here.
Back
Top