Vertical Spreads for Aggressive Growth

ryank · Aug 13, 2006

Quote from rallymode:

Unline FOTM spreads, when you go CTM you really dont have to close if you dont want to. It isnt all that prudent at all. In fact, most of my SPX CTM spreads are expiration probability bets to begin with unless i get most of the profit right away. As such, i sometimes dont bother closing as they go even ITM.

Good luck.

I guess I have been dipping my toes into the CTM pool a little too cautiously and looking to close once I get to a "good" profit on the position. Your point and Cache's are very well taken.

ryank · Aug 14, 2006

What do you think about this credit spread trade:

OIH Sep 125/130 puts for $1.40

rallymode · Aug 14, 2006

Quote from ryank:

What do you think about this credit spread trade:

OIH Sep 125/130 puts for $1.40

I am watching the OIH as well and will be trading it again soon. Right now, even though it looks oversold i am waiting until 130ish or so. I suppose you can scale into a position if you really want to do it now but i am waiting it out for a better entry.

Crucis · Aug 14, 2006

I just sold a Sep RUT 750/760C @ $0.70. Watched the price rise from $0.55 to $0.70 this morning, so I decided to take the plunge. I don't normally trade the RUT, but this looked pretty good.

ryank · Aug 14, 2006

Quote from rallymode:

I am watching the OIH as well and will be trading it again soon. Right now, even though it looks oversold i am waiting until 130ish or so. I suppose you can scale into a position if you really want to do it now but i am waiting it out for a better entry.

I took the plunge earlier and got a fill at $1.40. I can see where you are coming from waiting for it to possibly drop down around the 130 area. It looks like it could hold at 135 so I just went for it, could be wrong though. I wouldn't be surprised by a drop down to 130, only if it goes under that level.

Cache Landing · Aug 14, 2006

Quote from ryank:

I took the plunge earlier and got a fill at $1.40. I can see where you are coming from waiting for it to possibly drop down around the 130 area. It looks like it could hold at 135 so I just went for it, could be wrong though. I wouldn't be surprised by a drop down to 130, only if it goes under that level.

I'm jumping back into OIH at the 130 level too. But only if it gets there by friday.

rbsanders · Aug 14, 2006

I also trade oih and my daily and weekly indicators are pointing down. august and Sept can be tricky with demand falling off. I think only a storm or geopolotical event will cause 130 to hold again. Could be totally wrong though. This is just from a technical point of view.

ryank · Aug 14, 2006

Quote from Cache Landing:

I'm jumping back into OIH at the 130 level too. But only if it gets there by friday.

Will you go ATM at 130 or will you go CTM?

ryank · Aug 15, 2006

Quote from ryank:

I think I owe you and Yip a drink for telling me to be patient . The market dropped again on Friday making my profit on the 1295/1300 that much better . I'm still holding on and am looking for more CTM opportunities.

The market is up 13 points right now, I might have to take back the drink offer

. Here's to a breakdown in the afternoon like yesterday

!

RichardRimes · Aug 15, 2006

Quote from ryank:

The market is up 13 points right now, I might have to take back the drink offer . Here's to a breakdown in the afternoon like yesterday !

I was going to tell you "it ain't over 'till its over"

I got 1295 shorts as well. Interesting that they are only at 1.9....