Index Spreads

Discussion in 'Journals' started by dave197984, Sep 4, 2012.

  1. Im starting this journal for one main reason, no one i work with nor my wife seems to have any interest in my trading. They all basically like to spend every dime they earn as soon as or before they even have it. I however do not. I have been investing/trading for just over 4 years now and have absolutly fallin in love with the mechanics of the financial system. I started out not nowing jack and diddly opening an acount with TDA and bought Buffalo wild wings for some random price just because i knew they where opening alot of restaraunts. With literally only 75$ i think that got me about 2-3 shares, it was in fact a loosing trade. Which discouraged me and i didnt get back into it for about a month but had added to my account anthor whooping $75 but decided to try to do some research before i dived back in. So as most newbies I fell into the penny stock trap, which was very "educational" to say the least, I had winning and losing trades but never made or lost to much, looking back i was just lucky. I then joined Tim Sykes Alerts, and made some pretty good money and didnt loose to often, but it was way to time consuming and I have a life and very demanding job. So I moved on to dividend/value investing which was very profitable when i was out of the country for half a year. None the less I still hold many of these as I call them gems to this day. But I want more and over the year I have been paper trading and getting educated in option trading, and have done quite well, I started trading Options in my live account about 6 months ago still learning ever so much. Anyway I will be trading primarally the RUT index and primaraly doing Bear Call Spreads, the reason is simple the market crashes fear takes over much easier than greed and faith in an upswing, matter of fact there are very few months going back as far as I could in the SPX, or RUT where there was an rise of over 5% in a months time period. You can expect my level to be right around that about 30-60 days out, and taking about 80% profit when it comes around and waiting for the next one. I currenty have:

    SEP BEAR CALL SPREAD (CREDIT 0.77)
    14 865 C SEP RUT @ .74
    -14 850 C SEP RUT@ 1.51

    OCT BEAR CALL SPREAD (CREDIT 0.90)
    3 880 C OCT RUT @ 1.89
    -3 870C OCT RUT @ 2.79

    RUT is currently trading at 822.16 closest strike is 5.2% away.
    Looking forward to using this for discusion.


    These are my trades and not advice IN ANY WAY SHAPE OR FORM.