SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Very nice month then! I closed my FEB positions out early so I was just riding my MAR positions through SET which I guess don't matter much lol.
Would like the see more of a pullback in the SPX and have it carry through to next week.
Would like the see more of a pullback in the SPX and have it carry through to next week.
NDX set 1683.60
1683.60
March is quad witching. some volatile SETs then. Buy another ticket 
The market will have a nice pullback now.
How do I know that? Because I just bought some partial hedges with XSP just in case we start heating up in the next week or two and an adjustment is necessary after that.
BTO 100 MAR XSP $133 Calls @ $0.15 ($1,500)
Still think there are some pretty strong headwinds but a punch through 1300 could leave my 1335 strikes vulnerable with 27 days to expiration. I wanted to put some partial hedges in place now on a down day (somewhat) so that on a move above 1300, I can finance some adjustments if need be. This was pretty cheap and on a large move I can roll into bull call spreads for a net credit and add more hedges. I do not have any specific fears of the upside moves but just putting a little fence down now to prepare just in case.
So with the addition of this call partial hedge, the market will most likely pull back Was this move premature? Possibly, but coming to the end of my first quarter for 2006 I want some protection in place and I have a nice enough credit on the able to afford this partial hedge and still take home some Yang on March expiration.
How do I know that? Because I just bought some partial hedges with XSP just in case we start heating up in the next week or two and an adjustment is necessary after that.
BTO 100 MAR XSP $133 Calls @ $0.15 ($1,500)
Still think there are some pretty strong headwinds but a punch through 1300 could leave my 1335 strikes vulnerable with 27 days to expiration. I wanted to put some partial hedges in place now on a down day (somewhat) so that on a move above 1300, I can finance some adjustments if need be. This was pretty cheap and on a large move I can roll into bull call spreads for a net credit and add more hedges. I do not have any specific fears of the upside moves but just putting a little fence down now to prepare just in case.
So with the addition of this call partial hedge, the market will most likely pull back
Was this move premature? Possibly, but coming to the end of my first quarter for 2006 I want some protection in place and I have a nice enough credit on the able to afford this partial hedge and still take home some Yang on March expiration.