SPX Credit Spread Trader

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

  1. Ryan:

    How sure are you of that statement lol...

     
    #2731     Dec 14, 2005
  2. piccon

    piccon

    Sorry, but the last trading day for SPX is Thursday before Expiration


     
    #2732     Dec 14, 2005
  3. Just a general word to all for these type of questions. Without knowing your credit price and current b/a of the position it is harder to give useful advice since whether you have a profit or not or how far off your credit is from the current b/a mid-point could affect my suggestions. I could give you general advice about the stike but the other info will help me give more useful advice I think.

    I think 1285 is safe as of today but that could change with a day or two of up moves and a SET pending...



     
    #2733     Dec 14, 2005
  4. burrben

    burrben

    Insert Foot into Mouth...Do not pass Go, proceed directly to trading jail...


     
    #2734     Dec 14, 2005
  5. ryank

    ryank

    OOPS! It has been a stressful day here at work, got my days messed up. Sorry for the confusion.

    Dec options stop trading at 4:15 on Thursday, not today.

    Back to the grindstone.


    ryan
     
    #2735     Dec 14, 2005
  6. piccon

    piccon

    Ryan,

    I got this from CBOE. Where did you get Wednesday as last trading day?

    Last Trading Day:
    Trading in SPX options will ordinarily cease on the business day (usually a Thursday) preceding the day on which the exercise-settlement value is calculated.

    Settlement of Option Exercise:
    The exercise-settlement value, SET, is calculated using the opening (first) reported sales price in the primary market of each component stock on the last business day (usually a Friday) before the expiration date. If a stock in the index does not open on the day on which the exercise & settlement value is determined, the last reported sales price in the primary market will be used in calculating the exercise-settlement value. The exercise-settlement amount is equal to the difference between the exercise- settlement value, SET, and the exercise price of the option, multiplied by $100. Exercise will result in delivery of cash on the business day following expiration.



     
    #2736     Dec 14, 2005
  7. ryank

    ryank

    I mistyped. That's what I get for stressing out, talking on the phone and typing post all at the same time.

    Again, sorry for the confusion.

    ryan
     
    #2737     Dec 14, 2005
  8. Those of you in 1280s and 1285s I wuld start devising an exit strategy now since today's price action as of now (SPX @ 1272) is quite bullish.

    See below chart...
     
    #2738     Dec 14, 2005
  9. Sure looks like a breakout,.... wonder if it's short covering though?

     
    #2739     Dec 14, 2005
  10. daved275

    daved275

    I am in trouble now. I shouldn't have taken a shower. The spx has moved up quite a bit. My credit was .40 and the bid ask right now is 1.35 x 1.70. OUCH!!!!!!!!!!!!!!
     
    #2740     Dec 14, 2005