SPX Credit Spread Trader

Meditate and deep breathly while looking at this and all your stress will vanish...

 

hahaha, saved me the effort of searching for the link. What market?

 

I feel better already. Thanks

 

Riskarb, still think it'll reach 1285 by exp?

 

No chance, IMO. My guesstimate is that we saw the top today at least for the short-term.

 

Put on a DEC 1230/1240 credit spread yesterday at .50
Legged out to today at near the top (spx=1269) with the 1240. Sold the 1230 when the spx hit 1267 for a total return of 3% after commissions. Not bad for 2days.

I say all of this to thank everyone on the board. This is truly a learning experience from reading everyones post.

Thanks most of all to Phil.

Here's wishing everyone a Merry Christmas and Happy New Year.

Pyhootie

 

Nice trade and nice scalp. Certainly was a good day to trade off the swings if you could.

 

12/12 bought oex calls in anticipation of today's meeting
12/13 sold those calls for 45% profit.


Small profit though, as I traded very few far OTM contracts.

Next time, I will trade just OTM.

 

I think risk is abt right on this...ever since nov set I'd been thinking if you did it every month (buy the atm straddle) would you come out ahead...looking at past performance I think most of the time IF you can get an atm straddle for abt 2-3 $ you won't make money...then there are other times you will make it big. Last dec set actually was down almost 12 pts...I've been trying to figure out that one...don't think THAT will happen but coach is right 3 witch is to volatile to predict.

 

Has anyone backtested this? I've been wondering the same thing.