SPX Credit Spread Trader

About time someone else stepped up LOL. I was responsible for the previous pull back so someone else had to take a turn ;).

Congrats on stepping in with a partial hedge. Proactive risk management is the best way to stay on top of the positions.
 
Pardon the interruption but just wanted to let those who are interested know that my radio show has a new time. It is moving from Wednesdays and 30 minutes to Monday and 1 hour. The new time slot is Mondays 5:00 PM to 6:00 PM EST and you can listen in on the internet at www.washingtonbusinessradio.com/Default.asp

I was going up against day-time soaps on TV and lsing market share so we moved to Monday nights at 5:00 where I can esilytrounce Home Improvement re-runs on the WB!

Anyway, I remind all that the show is geared towards beginner and intermediate traders to learn properly how options work and how to use the correctly, but I will cover complex strategies and positions since I have more time.

Sorry for the commercial and I now take you back to your regularly schedule sideways moving, cash creating SPX.
 
Coach,
What APR PUT spreads are you looking at ..... 1205/1195 range ?


Quote from optioncoach:

April is 48 days to expiration which means next week it is within my credit spread range. Those strikes seem fine for APRIL but I would of course lean more to the 1360 as an extra 5 points of cushion is nice even if the return is lower. It is hard to determine where the overhead resistance is above 1300 since we would be in 4 or 5 year highs.

So in those instances you wanna go as far OTM as possible while still getting a decent return as the market kind of shows you the way. We have strong headwinds for now as the market cannot break 1295. perhaps she is turning over for more downward movement which makes the calls attractive.

You could wait a few more days for a move back above 1290 to grab some good credit way OTM. 1360 is probably a good range for short strikes on the call side.

My first instincts though is to grab some nice puts way OTM and take advantage of the IV skew and time value premium now and maybe find a good call entry if it presents itself. Will look much closer next week.
More...
:confused:
 
Honestly I have not had much time and also the APR strikes were beyond my 45 day window. However today they are now in range and I will start looking. For pure safety sake I will most likely only look at puts at 1200, give or take 10 points. I know I could make more looking into 1230 or so but do not want the risk with a market showing no strength past 1295.

I will see what happens this week to see if the market shows any directional bias at all..
 
Taking advantage of this nice drop I sold 1210 @4.0 net credit on the put side is $1.20 per contract so now I have an April IC
1340/1350 call and 1200/1210 put total credit both sides $2.50

decided that in March I futzed around too much...with a poorer result than say Jan or Feb soooo I'm taking the directional bet that April will be lower (hopefully not 1210:p) and will worry about adjustments when/if time comes.

edit..interestingly the volume on the 1210 was actually higher than the OI..thought I might have a hard time getting filled but got filled right away at mid
 
Quote from DonnaV:

Taking advantage of this nice drop I sold 1210 @4.0 net credit on the put side is $1.20 per contract so now I have an April IC
1340/1350 call and 1200/1210 put total credit both sides $2.50

decided that in March I futzed around too much...with a poorer result than say Jan or Feb soooo I'm taking the directional bet that April will be lower (hopefully not 1210:p) and will worry about adjustments when/if time comes.

edit..interestingly the volume on the 1210 was actually higher than the OI..thought I might have a hard time getting filled but got filled right away at mid
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I'm living a little closer to the edge than you. I've actually got some APR 1320/1350 calls. I too feel that it is going to have a hard time starting enough of a charge to head too far north. I haven't finished off the IC yet. Trying to decide whether or not to follow your lead. I hear "everybody's doin' it". LOL:D Maybe I'm greedy and want a little better fill on the put side. Or maybe I'm just scared that a big drop is coming. I am kind of a wuss sometimes.
 
Quote from Cache Landing:

I'm living a little closer to the edge than you. I've actually got some APR 1320/1350 calls. I too feel that it is going to have a hard time starting enough of a charge to head too far north. I haven't finished off the IC yet. Trying to decide whether or not to follow your lead. I hear "everybody's doin' it". LOL:D Maybe I'm greedy and want a little better fill on the put side. Or maybe I'm just scared that a big drop is coming. I am kind of a wuss sometimes.
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hey...I just might be leading you off a cliff:eek:
 
I had an order for 100 APR SPX 1165/1175 Put Spreads @ $0.50 that has just sat all day. B/a was higher when I placed the order, but it has shrunk some so a fill is unlikely. I would love to grab strikes below 1200 on the put side for added safety cushion. No fills today though but plenty of time.
 
I would expect some more downside now that we broke 1280-1282. You'll soon have your "pick of the litter" this week ... (am I starting to sound like a Fortune Cookie?)

Quote from optioncoach:

I had an order for 100 APR SPX 1165/1175 Put Spreads @ $0.50 that has just sat all day. B/a was higher when I placed the order, but it has shrunk some so a fill is unlikely. I would love to grab strikes below 1200 on the put side for added safety cushion. No fills today though but plenty of time.
More...
 
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