SPX Credit Spread Trader

DOW? What's the Dow.... LOL.

Looks like a rising wedge/triangle there. Might be a short-term top. If both the DOW and S&P surge higher than we could be making higher highs into MAR. I am sure there is some bad news around the corner to bring us back to reality....

 

The market is just waiting for you to put on some sort of hedge so it knows which way to go lol

ryan

 

Mo,

Are you doing anything with your Butterfly 570/575/580?

 

I closed it Tuesday morning session for about 100% return on risk when XEO was around 575. I'm not greedy!

That was about as good a situation you can get with a 4 week fly. The probabilities of a fly ever reaching maximum value are miniscule so in a sense the risk/reward is a little mis-leading and not a good reason to hold till expiration IMO i.e. not a good idea to get pyschologically attached to the maximum reward (same goes for any position I suppose).

BTW, it was 565/575/585: a 10 wide fly (in my lingo 10 wide referring to the width of each wing)

 

Donna update...well haven't a clue but my basic mkt bias is to the upside..there are a lot of bears but bulls seem to be in control. Less fearful of a downside Have current orders...sell 25 1190puts at whatever the hell credit I can get....doing a 1235/1250 call credit....again whatever credit I can get. (trying for .50)
Filled on a single Long call (10 contracts) 1225 of 1.95 which will be a spec/hedge

will update on fills eod...got to run

 

geez...thats what happens when I'm in a hurry...ALL CALLS were 1335/1350 and 1325...I have NOTHING in the 1200 range...sorry

 

last time i will ask, when will settlement price for spx be shown?

 

Friday, sometime around 12:30 PM is the average time. If you have Thinkorswim they announce it in their news item. If not then go to www.cboe.com and look under Index Products and Settlements.

 

Coach:

It looks like I put on a 1320/1335 March bear call at the absolute worst time. Market immediately started going up, thereafter, and hasn't stopped since. I may rival you as a contrarian indicator.

Anyway, I wanted to get your preliminary opinion on the "box" strategy. Is it worth my spending a lot of time to understand since I may need to do something shortly.

I'm pressed for time this week, so I was hoping you might help filter my options for trying to hedge/protect my position.

Thanks.

 

I think alot of people felt the call side was where we wanted to be this month (MAR) given the downtrend that was appearing on the charts. I looked at last weeks up-surges as a gift from the Option Gods that I might open up my Call Spreads for March for good premium! Let's hope thye hold.