SPX Credit Spread Trader

Discussion in 'Journals' started by El OchoCinco, May 17, 2005.

  1. ryank

    ryank

    1350/1360 current mid $3.85 :eek:
    1250/1260 current mid $.425

    The market is heading right into my sag in my diagonals. A nice sharp pull back would help both of us :).
     
    #10471     Sep 26, 2006
  2. Sailing

    Sailing

    VEGA Believers,

    You gotta be a believer of VEGA depreciation after a day like today.... tremendous effect on the Double Diagonal.

    But not to worry... expiration is still three weeks off.

    M~

    PS Placed a tent pole on the Double Diagonal, ie, sold a 1325 Put Calendar Oct/Nov on this volatility drainage day.
     
    #10472     Sep 26, 2006
  3. Sailing

    Sailing

    Patiently waiting for coach to place hedge position.... ie, anytime now Phil would be appreciated.

    M~
     
    #10473     Sep 26, 2006
  4. tyrant

    tyrant

    thanks
     
    #10474     Sep 26, 2006
  5. You sold a put calendar at VIX < 11?
     
    #10475     Sep 26, 2006
  6. It is someone else's turn this time lol.... I am sitting on my short 1340 strike for ES (which is at 1346.50 right now)....

     
    #10476     Sep 26, 2006
  7. Wow I actually understand that.... :)

     
    #10477     Sep 26, 2006
  8. tyrant

    tyrant

    The call diagonals increased in value from about $0.80 to $3.85? Hows that different from credit spreads in terms of safety? I am also a bit confused from prior posts that in diagonals, you want your short strike to be breached???(obviously not in this case) Or does that only refer to when the front month is about to expire, and you want the price to go near your short strikes to gain maximum on your long options? any explanation is much appreciated.
     
    #10478     Sep 26, 2006
  9. tplast

    tplast

    I think ryank was just commenting on the current value of rsflint's positions, but didn't mention his own.
     
    #10479     Sep 26, 2006
  10. rsflint

    rsflint

    Ryan, yah the 1350/1360 is looking ugly. I ran the #s today and figured min $4 to close it which will be PAINFUL. I know you are in a diag, but what are your thoughts for a new position to open?? For example I was thinking about opening at 1360/1370 after to offset the debit..but with OC not doing his hedge and Cramer-speak, who knows what will happen!! I've checked the technicals and all say bullish except stochastics and fibonacci which are very bearish. Thanks for the post and response in advance.
     
    #10480     Sep 27, 2006