smilingsynic optioncoach Thanks for the reply to my post. I am grateful that both of you could find time to reply in this hectic season of adjustments.
Well, the SPX is under 1175 and I sold 1200/1210 call spreads for $1.10. May sound a bit bold/risky but the market internals are so bad and with more earnings news coming, I don't see much of a rally in the next few days. 1155/1165/1200/1210.
That is a pretty bold move with the calls, also on the puts as well (at least for me). There really isn't a catalyst on the horizon to shoot the market higher except for Phil's "last bear selling" situation. I don't think the jobs report if good will make the market take off but I think it could cause another good move down if it is really negative. Of course, it may be a somewhat non-event because it is/has been hard to tell how Katrina and Rita are affecting things. I guess to sum it up, I think the market is more likely to move down than it is to move up. There, I have just joined the bear camp so let the rally begin right Phil! ryan
Well the thing is the jobs report may just be a lame excuse for bulls to come back in for the moment. I also feel that with KatRita, the jobs report is skewed and not realistic but people looking for something to hang their hat on. Perhaps today shook out the last bears and selling pressure will subside momentarily. Nice late move back higher although I would have been happier if it pierced 1180 or closed at it. We might have a quieter day tomorrow with Yom Kippur (reason I won't be trading tomorrow ). INTC also took the market down as well as AAPL a bit. Problem is that if economy is doing well, fed may keep raising rates so it is double edged sword. Hopefully today was a major last gasp and we will have smaller daily fluctations. With my adjustments I do not mind if we creep lower over the next 5 days slightly since I will still be OTM but my partial hedges will make more money. Man, today was rough lol. Phil
Oh Boy! I have been following this thread from the beginning. The past few days of this discussion have been most educational! As we know anyone can make money when the market is cooperating with their positions. And these SPX spreads seem like they have the potential to open that profit window a little wider. But as we all see, volatility can bite this strategy in the arse. I question why some are rolling 5 or 10 points when this market is on the move. Sure there are only 5 days till ex. But look at recent history, this market could move 50 by then. In either direction. As a newbie, and without the easy recent months of profits under my belt, I got bit playing this game. Not too bad, I got out with a small loss and will wait for better days. I do not miss the anxiety though. Freeing myself from that was worth closing for a small loss. Thanks to Coach for impressing on me the truths of risk management. I think this is a great strategy, but not now. Iâll be sitting it out until Jan or Feb or whenever it feels safe to return.
Welcome! If you were feeling the anxiety then closing out for a small loss was certainly a smart move. You are right to wait until you feel more comfortable. Although I think NOV and DEC could be some great months for deep OTM put spreads. Keep following along and keep sliding up the learning curve. No need to put money in to follow along so do not rush in before you are ready. Phil
Hey, Phil! Just thought I'd drop in and see what you're doing with this market the last few days. Our brokers are loving us this week! I've been rolling call spreads to lock in profits and today finally triggered an adjustment on the put side. A little ugly on the downside today! Here's a question for you. As I mentioned, I needed to roll my bull put spread and placed a limit order to close. It was filled, but not until late in the day when the market saw some rebound. With a relatively short period of time left before the bell, I did not get filled on the new put spread so I'll be back at it tomorrow. How do you deal with the risk of making the adjustment over the course of two trading days? Good luck with your positions! Chris Smith