Vertical Spreads for Aggressive Growth

RichardRimes · Sep 1, 2006

Quote from ryank:

What CTM spread(s) do you have?

earlier in the week I sold 1350/1375 then yesterday or daybefore and today sold 1330/1350 stomping over the 1350's so now I have 1330/1375 OCT call spread. The plan on this is not to hold to Oct but close given some time and downward action.

ryank · Sep 1, 2006

Quote from RichardRimes:

earlier in the week I sold 1350/1375 then yesterday or daybefore and today sold 1330/1350 stomping over the 1350's so now I have 1330/1375 OCT call spread. The plan on this is not to hold to Oct but close given some time and downward action.

A 45 point wide spread? Go big or go home

!

rallymode · Sep 1, 2006

donna,

you are going to give me a heart attack with these 45 pointers. :eek:

RichardRimes · Sep 1, 2006

its as close as I can get to being naked

rallymode · Sep 1, 2006

Quote from RichardRimes:

its as close as I can get to being naked

if this kind of trading is appealing to you, perhaps you should look into ES call frontspreads.

RichardRimes · Sep 1, 2006

can't trade options on futures yet...I'm very interested in coach's diagonals using the EW/ES

ryank · Sep 1, 2006

Quote from RichardRimes:

can't trade options on futures yet...I'm very interested in coach's diagonals using the EW/ES

I like the way he uses the end of month and regular expiration options, gives you more choices. I will wait until ToS has options on futures to use that strategy. In the mean time I get to watch others experiment with them and follow along.

ryank · Sep 2, 2006

Quote from Cache Landing:

Today's Action

BTO 2 SPX OCT 1260 p @ 6.8

Year to Date P/L

Account Value: $14,848.50

YTD Gross P/L: 5,480.00

YTD Commiss: 631.50

YTD Net P/L: 4,848.50

YTD % P/L: 48.5%

Couldn't resist. This whole time I've been talking about 1310 resistance so I figured I'd better back up my mouth.

The 3 days of time decay didn't bother you on this one? Why not wait until Monday?

RichardRimes · Sep 2, 2006

The time decay was probably already priced in when he bought the put but I'm a little surprised Cache you didn't first sell an OCT call spread and wait for a turn in the mkt to buy the put.

rallymode · Sep 2, 2006

Quote from RichardRimes:

The time decay was probably already priced in when he bought the put but I'm a little surprised Cache you didn't first sell an OCT call spread and wait for a turn in the mkt to buy the put.

cache already has a sep bear call spread which might get in trouble over the next week or two. I am sure he is probably waiting to see how this one plays out before he opens up another one. Atleast thats what i am doing, though i agree this is a pretty good place to open OCT positions.