SPX Credit Spread Trader

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

  1. bcreech

    bcreech

    An upside down crash; its a frickin nightmare.
     
    #11041     Oct 12, 2006
  2. ryank

    ryank

    True, call diagonals are a little different than the puts as volatility works against you when the market pops like it has today. I decided against making an adjustment to my trade, I just got out (a sure sign that the market will drop 10+ points tomorrow).
    The SPX was only about 5 points from my short and I was able to close out for a whopping $60 loss. On 2 of my trades I got fills that were .05/.10 better than the mid fairly quickly, ToS helped me out there I'm sure :).
     
    #11042     Oct 12, 2006
  3. Since you have closed today, I will keep my call diagonal and will benefit from a drop of 10 points tomorrow with vol increase. :)

    Keeping a close eye on my rut call vertical as I can close now at breakeven, but it is still 25 points from my short strike.
     
    #11043     Oct 12, 2006
  4. Maverick74

    Maverick74

    What happened to all the bears on this thread?
     
    #11044     Oct 12, 2006
  5. bcreech

    bcreech

    Waiting for the magic downtick.

    Im thinking Im going to cover now,you all can expect that long awaited correction any time.
     
    #11045     Oct 12, 2006
  6. Not sure if there are bears here, just not expecting the magnitude of the climb in such a short period of time.

     
    #11046     Oct 12, 2006
  7. ryank

    ryank

    I've still got a put diagonal. I hear some bearlike growls off in the distance, I just hope they show up soon, like the next few days :p.
     
    #11047     Oct 12, 2006
  8. Actually i think I do nto mind the climb since I can keep selling OTm Cross-Flys into the rally and raise the right side of my risk-profile....
     
    #11048     Oct 12, 2006
  9. I closed my put vertical and put diagonals for a small profit today.

    0.85 for $20 margin for put vertical, around 4%
    0.5 for $40 margin for put diagonal, around 1.25%.

    My call diagonal profit evaporated not because of upward movement, but because of a drop in vol.
     
    #11049     Oct 12, 2006
  10. Coach,

    Be aware of the effect of the vol drop for your cross-fly.
     
    #11050     Oct 12, 2006