Vertical Spreads for Aggressive Growth

Quote from burrben:

Yes, I just went to church for the first time in 15yrs praying that tommorow will be a down day for the SPX. Just kidding, but I'm short the 1330/1335. Boy, last week on Friday I was already counting the $$, and now I'm biting the nails. I really don't want to close out this trade, there would still be a profit, but not a very big one. If we are seeing any type of market move to the upside, or even just hanging around the 1320 area I think I will close.
What are you going to do?

PS: Any comments on just closing out the 1330 and letting the 1335 ride if it's a big set #?
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Yeah, the one lesson I learned a while ago was that with CTM credit spreads it is worth offsetting them as soon as you can buy them back at 0.05

With FOTM spreads giving up 0.05 is usually a pretty big chunk of the premium, but with ATM/CTM it is a small price to pay for peace of mind.
 
Quote from burrben:

Yes, I just went to church for the first time in 15yrs praying that tomorrow will be a down day for the SPX. Just kidding, but I'm short the 1330/1335. Boy, last week on Friday I was already counting the $$, and now I'm biting the nails. I really don't want to close out this trade, there would still be a profit, but not a very big one. If we are seeing any type of market move to the upside, or even just hanging around the 1320 area I think I will close.
What are you going to do?

PS: Any comments on just closing out the 1330 and letting the 1335 ride if it's a big set #?
More...

I was in the same boat with you with a 1330/1335 credit spread that was going to make good $. However, I bailed yesterday. Who knows, it will probably be a down day today. I wish i had a crystal ball.
 
Yesterday twice I put a bid in to close and twice withdrew it...futures are down this am so will be watching......:eek:

the thing to remember with the vix where it is there probably will not be HUGH moves in either direction...unlike this late spring and summer when VIX was at high double digits
 
Rally,

Decided to open more long calls in VIX today since we are at a super low level. Trying to decide how I want to set up the position on the next big drop. I don't think I'll hold out for it to reach 17 before selling some front month calls against my longs.

We'll see
 
Semis and housing are going to make me sweat this one out today. (BTW, my real account still has some 1325/1330 bear calls :eek: )

So far we've been in a nice tight range, but semis keeps trying to break out to the upside and if it does, SPX 1325 is just a piddle skip away.

Goooooose Fraaaaa Baaaaaa..........
Cache <---- massaging his earlobes
 
Quote from Cache Landing:

Yeah, the one lesson I learned a while ago was that with CTM credit spreads it is worth offsetting them as soon as you can buy them back at 0.05

With FOTM spreads giving up 0.05 is usually a pretty big chunk of the premium, but with ATM/CTM it is a small price to pay for peace of mind.
More...

Forgive me for asking, but was is CTM? Close To the Money?
 
Quote from jstancliff:

Forgive me for asking, but was is CTM? Close To the Money?
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Yes, Close to the Money. A phrase that really only applies to issues like SPX where there really isn't that much difference between being truly ATM and being 20-point OTM. If you are only 20-points or so OTM on SPX it is like being 1.00 OTM on AAPL. So for all intents and purposes you're really still pretty much ATM. But since you are technically still 4 strikes OTM it wouldn't make sense to say ATM.
 
What is the ratriorionale for a HUGH move :)

Quote from RichardRimes:

Yesterday twice I put a bid in to close and twice withdrew it...futures are down this am so will be watching......:eek:

the thing to remember with the vix where it is there probably will not be HUGH moves in either direction...unlike this late spring and summer when VIX was at high double digits
More...
 
Quote from optioncoach:

What is the ratriorionale for a HUGH move :)
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Ratriorionale huh??? I love it when you speak french. LOL

Seriously though, I think a HUGE move by definition implies IRRATRIORIONALITY.
 
Quote from Cache Landing:

Rally,

Decided to open more long calls in VIX today since we are at a super low level. Trying to decide how I want to set up the position on the next big drop. I don't think I'll hold out for it to reach 17 before selling some front month calls against my longs.

We'll see
More...


ahhh, you dont listen, those back month pups dont move man. Just sit tight and wait, cash burning holes in your pockets? :D

Scaling into my oct position here. Opened some es 1350/1355s for $1.83 average. Will add more after cpi/fed.
 
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