Vertical Spreads for Aggressive Growth

I take no ownership in the last trade:) actually to each his own. There are advantages to wide verticals...namely flexibility, you can close, roll (for extra credit) or just narrow a wide vertical. The 5 pt vertical is either a winner or loser...not much in the way of adjustment other than roll. In this other group I peek into now and then they are very hot on 50 pt wide vertical's. For myself I like 25 pt not too far OTM ( at least with lower vols)....and whats up with the imperial WE?
 
Quote from RichardRimes:

There are advantages to wide verticals...namely flexibility, you can close, roll (for extra credit) or just narrow a wide vertical. The 5 pt vertical is either a winner or loser...
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Donna, sure, its a free world. I am also quite sure those groups you peek into have been doing very "hot" as you said given the current market environment. I was merely commenting on the fact that there is no inherent positive expectancy in any potential adjustments. Hence, trading off risk for a better adjustment potential could be unwarranted to say the least. In fact, given the reasoning behind the original bet i could argue the opposite but i have no intention to polute cache's thread with my useless banter. :D
 
For what it's worth, I think there is one very viable reason for utilizing wider spreads.

Liquidity...

Unfortunately it becomes more difficult to trade 5-point verticals when you are well capitalized. SPX just doesn't have enough volume yet. Sure you lose potential profit by taking the wider spread, but a well capitalized account might not have any choice.:)
 
ryan,

OIH breaking down hard. Did you ever offset your vertical?

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Quote from ryank:

Coulda, shoulda, woulda...:(
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I took my lumps this AM...closed my 140/130 put credit spread at a debt of 8.55 :mad: had I had any courage I would have closed the short and let the 130 ride a bit...oh well win some lose some :)
 
Today's Action

BTC 5 SPX SEP 1325/1330 c @ 0.05

Year to Date P/L

Account Value: $15,739.50

YTD Gross P/L: 6,395.00

YTD Commiss: 655.50

YTD Net P/L: 5,739.50

YTD % P/L: 57.4%
 
Quote from rallymode:

ryan, sorry to hear about your bad luck. Just wondering what was left in the spread when the OIH was 140+ last week.
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I think I tried closing it for about .20 but couldn't get a fill as I was aggressive on my order. The spread is coming back a bit now, mid at 2.00 and OIH is just below my breakeven at expiration.
 
Quote from Cache Landing:

Today's Action

BTC 5 SPX SEP 1325/1330 c @ 0.05

Year to Date P/L

Account Value: $15,739.50

YTD Gross P/L: 6,395.00

YTD Commiss: 655.50

YTD Net P/L: 5,739.50

YTD % P/L: 57.4%
More...

Cache, didn't you start your account with about $10K? Was that Jan 01? Just curious.

Cru
 
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