SPX Credit Spread Trader

Coach,

I agree with your assessment of this particuliar issue. However, I feel that the Iranian issues certainly throw larger risk on our economy. I am not sure these are priced in yet.

Cody

 

It will be when someting concrete happens. The yapping back and forth does not do much, it will take a specific action on Iran or another party's part to make the market take notice and panic.

 

Agreed, but I think we, as spread traders, must try to analyze the potential for large SPX price movements. IF Iran (and Venezuala) threaten to stop or slow oil production I think we will see a strong market response.

Cody

 

Starting to poke our head through SPX support, should watch SPX closely now...

 

Thanks for the heads up. As long as I've been trading options I have never thought to ask for a discounted rate. It was no problem getting it when I called ToS. I don't know how I managed not to think of that over the past several years.

Learn something new everyday.

 

If you are not a 1 or 2 contract a month a trader, a good broker like ToS will accomodate you .

 

Well a good sign at the end of the day in that the SPX pushed back over the support and with over 10 minutes left, could close back in the upward sloping channel. Only good for today really since it could drop down any day. What would be more reassuring is if it would push back to the high of the channel.

 

Just got filled on the SPX MAR 1330/1345 bear call at $0.60. I called ToS for help since I was asking for $0.65 when the mid was at $0.725 to $0.75. After looking at the individual legs, the ToS guy suggested $0.60. I relented, and got filled in less than 2 minutes.

 

So, Coach. I'm not sure I see what is stopping you from considering bear calls for March. Your comment below would suggest that your somewhat pessimistic, at least in the short term.

 

No I am not pessimistic because the upward bullish trend is still in effect and is confirmed again by today's action. I think the top has lost a lot of momentum and is weakening but I h ave not seen the reversal yet to bring us down. If we get a little pop I may look at the MARCH call spreads but still a little hesitant as of now. Especially being at the lower end of the channel I might wait until we hit the upped end again if this trend is to resume. Watching and waiting...