SPX Credit Spread Trader

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

  1. gandutron

    gandutron

    1226.86 - and the vix is at an all time low, bear call spreads would be a good here.
     
    #261     Jul 15, 2005
  2. Choad

    Choad

    Nice trade coach.

    But...could you cut it a little CLOSER next time???!!!! :D

    Good trading to all.

    C
     
    #262     Jul 15, 2005
  3. Yesterday morning that spread looked as fugly as it gets. It had VERY significant M-t-M loss.

    But alls well that end well, I suppose.

    Nice hold OC.
     
    #263     Jul 15, 2005
  4. congratulations Coach.

    PS great thread!
     
    #264     Jul 16, 2005
  5. Hey Everyone..

    I am currently out of the country until Sunday so I may not post as often this week.

    Last Friday was quite an interesting ride huh. I usually do not cut myself that close on expiration but when I opened that 230 spread, I admitted it was riskier than my normal spreads.

    THe settlement was around 1226 so the spread expired worthless. It therefore reached the maximum profit.

    The position was

    50 JULY SPX 1230/1245 Call Spreads @ $1.00
    Credit = $5,000
    Margin = $75,000

    My AUG Iron Condor is still open and while I am away I am simply montoring it.

    Take care all and will check in soon.

    Phil
     
    #265     Jul 18, 2005

  6. Hey Phil,

    Glad that trade worked out it was a close one, that was some nice credit you collected. I actually had the 1235/40 Bear Call Spread on and it was white knuckle time for a bit when the index was rallying at 1233 earlier in the week, lol. Enjoy your trip, BTW if your going to be in my neck of the woods LMK. :cool:
     
    #266     Jul 19, 2005
  7. Hi Coach. In OX when you place an order for a spread, do you watch both options, or do you watch them as a spread and one price? Under chain type you can chose call spreads and make them 10 or 15 or 20 wide. Is that how you watch and enter orders? Just curious on the mechanics of it.

    Thanks
     
    #267     Jul 21, 2005
  8. r-in

    r-in

    Just wanted to add in my thanks for the thread! Very interesting, and educational for me.
     
    #268     Jul 21, 2005
  9. Phil,

    You mention several times in this thread that you don't want to give away all your secrets (although you have been quite generous so far, so thanks much).

    I'm wondering if the rest of your secrets are in your book? If not, can you suggest an alternative way to tap your grey matter to unlock those secrets?
     
    #269     Jul 22, 2005
  10. I use the OX put or call spread option chain screen and look at the 10 and 15 point spreads to see the different prices and look for strikes I like with respect to potential fills. I do not leg into each spread one option at a time but rather work on splitting the spread bid/ask spread as much as I can.

    Phil

     
    #270     Jul 25, 2005