Vertical Spreads for Aggressive Growth

Quote from Cache Landing:

In the end I got into the JUN 1240/1245 bull put spread for $4.55 credit.:D

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Now only if we could get all our credit spreads with such a risk profile :D

I wasnt looking for too much during this month but it appears the recent swings have been quite beneficial for both of us. I am loving this high volty, open a position then close it in the black in 2 days, if it goes against ya just wait two more days :D (limited risk spreads do wonders in such an environment)

It would be nice if vix stays >16 through the summer doldrums but i am not holding my breath.
 
Quote from nlslax:

Great leg-in. The Leg-In Lady herself couldn't have done better.
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Your right:D no way...thats a great trade, but one question. Selling 1 1245 put...doesn't that create a margin issue? For me it would require 36k (in the IRA) for just 1 contract. I know if your in a margin account so its less and of course you then bought the 1240 the same day. I always have to buy the put or call first then leg into the sell side. I guess I'm just asking about how you do the accounting since the account was initially 10K.
 
Quote from Aardvark:

Your right:D no way...thats a great trade, but one question. Selling 1 1245 put...doesn't that create a margin issue? For me it would require 36k (in the IRA) for just 1 contract. I know if your in a margin account so its less and of course you then bought the 1240 the same day. I always have to buy the put or call first then leg into the sell side. I guess I'm just asking about how you do the accounting since the account was initially 10K.
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STO 1 SPX JUN 1245 p @ 7.00

Looks like he sold the short 1245 Put today against the 1240 he already owned.
 
Today's Action Cont.

BTC 2 ATI JUN 65/70 c @ 0.85
STC 2 SPX 1245/1255 p @ 2.70

Profit/Loss

Acct. Value: $13,321.50

YTD Gross P/L: $3,830.00

YTD Commiss: $508.50

YTD Net P/L: $3,321.50

YTD % P/L: 33.22%
 
Quote from Aardvark:

found it thanks...nice move to buy on the 2nd
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Thanks, that was part of the strategy this time because of my volty forecasts. There was however an element of luck in that trade. Since I was golfing during market hours when SPX bottomed out, it just happened that my sell @ 7.00 order was near the bottom. I was originally going to set it @ 10.00 but wasn't sure how fast SPX would drop. In the end I decided to try to get the unbalanced IC that I'm in right now at 1:1 r/r. $7.00 was that point.:D
 
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