SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Coach,
When choosing your strikes for credit spreads, do you ever give much thought to the typical volume of contracts traded at certain strikes.
For example, if you want to sell put spreads in the 1225 area would you purposely try to sell the strike with the higher volume.
It would seem to me that the strikes like 1200, 1225, 1250, 1275, etc MIGHT bring in more premium as a result of the higher contract volume.
Have you, in your experience, found this concept to be true?
thanks.
When choosing your strikes for credit spreads, do you ever give much thought to the typical volume of contracts traded at certain strikes.
For example, if you want to sell put spreads in the 1225 area would you purposely try to sell the strike with the higher volume.
It would seem to me that the strikes like 1200, 1225, 1250, 1275, etc MIGHT bring in more premium as a result of the higher contract volume.
Have you, in your experience, found this concept to be true?
thanks.
The volume really will not push the premiums so I doubt that going after the high volume strikes will result in better premiums. It might affect the ability to get fills or shave the bid/ask spread but I have no way of really verifying this. So for me it is... inconclusive lol.
At least for me with the market at a seeming standstill ( spx ended the month less than 5 points from its start?) I think we are playing the waiting game...not much to do.....
Well I am fully loaded in MARCH options which are well OTM so I am just letting the positions do what they were intended to do. I have some margin room and may look into APRIL but not until next week or so.
I am sitting on the end of the first quarter where as I have said I like to take it easy and take an easy 1Q to get me focused for the year (if the market cooperates
). And so far she has so no need for me to jump forward.... yet!
We will see what happens next week since this week was a nice sideways nothing. 2 weeks to expiration so theta will come in bigger with each price swing away from your short strikes. APRIL will be on the radar sometime next week.
I am sitting on the end of the first quarter where as I have said I like to take it easy and take an easy 1Q to get me focused for the year (if the market cooperates
). And so far she has so no need for me to jump forward.... yet!We will see what happens next week since this week was a nice sideways nothing. 2 weeks to expiration so theta will come in bigger with each price swing away from your short strikes. APRIL will be on the radar sometime next week.
Donna,
Are you still leg-less in your April Put position. I too am looking at April....
M~
PS... We're heading out your way March 31- April 6. Will be in Vail, CO. If you would like to spend a day skiing, let us know. We have quite a group coming out.... looking forward to skiing in your snow.
Are you still leg-less in your April Put position. I too am looking at April....
M~
PS... We're heading out your way March 31- April 6. Will be in Vail, CO. If you would like to spend a day skiing, let us know. We have quite a group coming out.... looking forward to skiing in your snow.
awesome...count me in...still leg-less now the put is 2.55 (mark) I paid 2.80....thinking of actually buying more but under 1200