SPX Credit Spread Trader

Domestic,

What do you do if your ATM spread does not show a profit? What is your drawdown... exit strategy.

thanks,

Murray

PS. Other indexes I trade are the XEO & XAU



i am looking for opinions on any other index that has "tighter" spreads and is also liquid. i am sure this has been discussed before, but the realtime answers here are fantastic.
i primarily write atm spreads and close when very small profit is achieved, then start again. [/B][/QUOTE]
 
well, to be perfectly honest; been doing otm spreads for 14 years stubbornly rolling any itm positions. never ever lost money because i always had enough capital to repair/roll. a lot of traders may not like this, but it has worked for me. i was never one to overeact, ultimately my trades swing back into profitable territory. of course profitable becomes such because of collected premiums.
i have only been trying itm for 3 months, no rolls yet, but they of course will happen. what i need is volatility, and less slippage. the plan has been credit 3/ buy back 2.75 or 2.5. sometimes i get to buy back for less, sometimes for more. no greed, i just want it to move slightly in my direction; but with large mm spreads, i need it to move sometimes a bit too much for my comfort. these trades were meant to last only a day or two.
so to my original question, any better index's out there? idealy one's that trade on the more competitive exchanges(box/ise)?
 
What repair strategy (gies) do you use? When do you decide it's time to repair?

Quote from domestic:

well, to be perfectly honest; been doing otm spreads for 14 years stubbornly rolling any itm positions. never ever lost money because i always had enough capital to repair/roll. a lot of traders may not like this, but it has worked for me. i was never one to overeact, ultimately my trades swing back into profitable territory. of course profitable becomes such because of collected premiums.
i have only been trying itm for 3 months, no rolls yet, but they of course will happen. what i need is volatility, and less slippage. the plan has been credit 3/ buy back 2.75 or 2.5. sometimes i get to buy back for less, sometimes for more. no greed, i just want it to move slightly in my direction; but with large mm spreads, i need it to move sometimes a bit too much for my comfort. these trades were meant to last only a day or two.
so to my original question, any better index's out there? idealy one's that trade on the more competitive exchanges(box/ise)?
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Quote from piccon:

What repair strategy (gies) do you use? When do you decide it's time to repair?
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Sounds to me like mostly averaging down. Of course, when averaging options it is necessary to roll also.
 
Just the way I abbreviate BeaR Call Spread - Not to be confused with the Bull Call Spread. Although, with the strike price listed, I guess it's kind of obvious.

Quote from rdemyan:

I've got one at 1320. What's the R stand for?
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Within 15 points is adjustment territory. I think we may have a pullback off these new 5 year highs and even off of 1300 but with 3 weeks left any pop above 1300 means some more run in the market perhaps. Got to hedge or adjust to avoid a black eye.

Quote from CashCache:

Yikes!!

Anyone else have a BRCS sitting around 1310ish? :mad:

-Cash
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My line in the sand is 1295, but I make it a point not to close down or roll until after 2:30 ET. By then it seems the market makes up its mind on the direction.

If the SPX closes above 1295 today, it is going to be a little expensive to get out of my 1310/1320 considering such little time left in this month, and April just too far away from me to comfortably roll to. My only choice now (as I see it) is to shut it down.

I was able to pick up a 1330/1340 today for a .50 credit, so that will offset my debit should I close down the 1310/1320 today.

Any suggestions?

Thanks,

-Cash

Quote from optioncoach:

Within 15 points is adjustment territory. I think we may have a pullback off these new 5 year highs and even off of 1300 but with 3 weeks left any pop above 1300 means some more run in the market perhaps. Got to hedge or adjust to avoid a black eye.
More...
 
Hey coach. I can't seem to find your 175 lot Mar IC, looking back. Where is your short call strike? Also, with 17 days left you will do some kung foo adjustments 15 points from your short strike? Do you allow spx to get closer as exp. nears? I'm trying to get a feel for your risk management.

Also, do you have any guidelines/preference for strike width on buying the wings on the IC?

Thanks for all your input.
 
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