SPX Credit Spread Trader

I sold 122/123 Call spread on XSP today. Got $0.25/contract.

I wouldn't mind a few bears coming into this market now....

 

Nice big brass ones.... lol

Good luck!

Phil

 

lol, thanks.

 

just checking what time zone posts are stamped

 

You can check and/or adjust your timezone by clicking on "Your Account" on top of this page, and then "options". The Time Zone is on the bottom of that page.

 

Has anybody looked into credit spreads on ER2. It looks prices are very good.

 

SPX is above its 20, 50 and 200 day moving average. I am going to look over ways to hedge my short 1240 call or maybe roll up. I know there are a number of us with the 1240/1250 spread, are you planning any changes at this point?

ryan

 

Hi ryan, 1240 is still a way with two weeks remaining. the chart I'm following shows the dow to be in positive territory and after today may be toping out..I'll be looking at getting in tomorrow at around 1240 if futures are pos...but don't know,,,1245 would be more secure since we haven't been above it this year (I think

 

I am not personally in any calls currently, but I would be a little anxious if I was. I think the market looks pretty strong fundamentally and technically for the short term. I was never able to get good credit for anything that I felt comfortable with on the call side. I still can't for December. Was even thinking of going long some December calls or spreads because I think we are due for some upward movement.

 

Updated Positions:

Well we made it above 1200 on some strength and are still going up (now you know why I was reluctant to jump in on the call side for NOV!). I decided to free up some margin and just ride a new position into DEC.

Remember my positions were:

-110 SPX NOV 1100/1115 Put Spreads @ $0.50

- 90 SPX NOV 1150/1160 Put Spreads @ $0.65


Here is what I did:

1. I closed the 1100/1115 Put Spreads for net profit of $0.25 or $2,200 after commissions to free up margin for DEC.

2. I sold:

-300 SPX DEC 1135/1140 Put Spreads @ $0.30

Credit = $9,000
Risk = $150,000
Return = 6%.

3. Still have 90 1150/1160 Put Spreads for NOV.


Basically I have a great year of returns and just want to protect them and take advantage of NOV/DEC strength. Today was an upday but still grabbed the puts to take advantage of the time to expiration. I still have plenty of free margin to add to my positions on a down move. My goal is to hopefully close out the position by end of NOV and then place JAN spreads to close out DEC for a good year.

With about 25% return to date I would rather grab a little more premium and play it safer instead of being more aggressive and risk all that hard work this year (which really started in APRIL so imagine if I was trading from JAN).

So I added another $9,000 in premium for DEC expiration and can increase that with more puts or even calls if the market really explodes and some deep OTM call strikes look nice.


So summary of positions:

- 90 SPX NOV 1150/1160 Put Spreads @ $0.65

-300 SPX DEC 1135/1140 Put Spreads @ $0.30


I also will update the SPX/Weekly calendar as that expiration approaches tomorrow.

Phil