I haven't been following this thread but the title "Sell OCT SPX puts" tells me it's time to let this one go.
I had to quote this before he edits his stupidity. You can't manage the put trade. The terminal risk is too large to hedge practically. $8k in premium is 31 points on a single big SP. It's simple maths -- the hedge becomes the primary trade, which proves the point that you HAVE NO BUSINESS SELLING PUTS. You wouldn't know your gamma/dgamma risk if it fell from the sky and landed on your face. You somehow believe it takes a special skill to write premium? You sold a single SPU8 as a hedge against $8k in deep puts with a 5-point futures stop? What happens when spot rallies 5 and reverses? As an example -- I trade with a guy who gamma-trades long vol. He earned the daily ATR today on futures scalps. You're hedging garbage and taking on unlimited risk for $8k in premium. Please continue to respond; it's just beginning to get interesting.
Jahajee, what brokerage do you use. Why dont you just post the daily trade log corresponding to the graph. It doesnt take any time and would end this discussion.
-------------------------------------------------------------------------------- Quote from Jahajee: Quote from Jahajee: SEP 16th 2008: Closed overnight SPU8 short position - sold @ 1209 and bot @ 1188 - Profit 21 points SOLD 20 OCT SPX 1000 PUTS @ 4.45 Total position: SOLD 40 OCT SPX @ 4.15 Closing price = 2.20 BOT 10 OCT XLF 18 calls @ 2.40; closing price 2.83 Previously : bot 8 OCT XLF 19 calls @ 1.85; closing price 2.25 BOT 10 OCT USO 75 calls @ 3.60; closing price 4.40 Previously: BOT 10 OCT USO 78 calls @ 4.05; closing price 3.02 Sold Short 1 SPU8 @ 1214 -------------------------------------------------------------------------------- Closed SPU8 @ 1188 - Profit 25 points If markerts cooperate, I will short again in regular session in a few minutes. Can't update real time but I am looking to buy SPX puts on rally to 1225 and above. Closed SPU8 @ 1188 - Profit 25 points If markerts cooperate, I will short again in regular session in a few minutes. Can't update real time but I am looking to buy SPX puts on rally to 1225 and above. -------------------------------------------------------------------------------- Sep 17 Closed overnight position short SPU8 @ 1188 - Profit 25 points - $6,250 SOLD 40 OCT SPX @ 4.15 Closing price = 8.00 10 OCT XLF 18 calls @ 2.40; closing price 1.95 8 OCT XLF 19 calls @ 1.85; closing price 1.60 10 OCT USO 75 calls @ 3.60; closing price 6.10 10 OCT USO 78 calls @ 4.05; closing price 4.40 ESU8 trades: see attached chart, 15-lot position Profit 16, 125 Looking to sell SPZ8 in overnight session --------------------------------------------------- Attachment: es sep17.png This has been downloaded 15 time(s). SEP 19 Will be closing XLF and USO calls I may actually sell a few XLF calls... Will be buying 40 1025 or 1050 OCT SPX puts - to lock in profits on 40 SPX OCT 1000 puts and adopt a slightly bearish stance Will be selling OCT SPX calls - OTM, far OTM and, scalping S&P futures on the short side.... Have a good weekend
Not paper. Real. Stay tuned. Those SPX puts look good ..want to buy some And sell those fat USO 75 and 78 calls I bot when USOwas swooning...
With USO soaring, now past 88, I will close the calls. See if I can get 14 on the OCT 75 and 11.50 on the OCT 78