SPX Credit Spread Trader

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

  1. piccon

    piccon

    First time I was so coscious. I am only 1/4 invested this month. I didn't see any trend. I was expecting a downturn so I could get the PUT spreads and I am still waiting. 2 weeks to go; there is still time for me to get some return.

    Stcoks spreads used to gime me very good returns but this month I was to scared to do so.

    So far: I have

    SPX 1330/1340
    OEX 595/600
    OEX 590/595 I am very cocerned about this one but I will see How the market is evolving. I may want to close it by monday or Tuesday. I got $1 for it long time ago.

    I am looking for anything on the downside SPX1230/1220 or SPX1235/1225.

     
    #4061     Mar 3, 2006
  2. How do you have a 590/595 bear call spread and a 595/600 bear call spread. The 595 strike would be cancelled out...

     
    #4062     Mar 3, 2006
  3. rdemyan

    rdemyan

    Coach:

    I'm feeling tempted by the following for April:

    SPX 1355/1365 bear call at $0.70
    SPX 1360/1375 bear call at $0.70

    What do you think?
     
    #4063     Mar 3, 2006
  4. piccon

    piccon

    Answer: Two different accounts.

    Holdings:

    OEX 590/595 @1.05
    OEX 595/600 @ 0.80
    SPX 1330/1340 @0.65

     
    #4064     Mar 3, 2006
  5. piccon

    piccon

    I will be doing 1355/1365

     
    #4065     Mar 3, 2006
  6. April is 48 days to expiration which means next week it is within my credit spread range. Those strikes seem fine for APRIL but I would of course lean more to the 1360 as an extra 5 points of cushion is nice even if the return is lower. It is hard to determine where the overhead resistance is above 1300 since we would be in 4 or 5 year highs.

    So in those instances you wanna go as far OTM as possible while still getting a decent return as the market kind of shows you the way. We have strong headwinds for now as the market cannot break 1295. perhaps she is turning over for more downward movement which makes the calls attractive.

    You could wait a few more days for a move back above 1290 to grab some good credit way OTM. 1360 is probably a good range for short strikes on the call side.

    My first instincts though is to grab some nice puts way OTM and take advantage of the IV skew and time value premium now and maybe find a good call entry if it presents itself. Will look much closer next week.


     
    #4066     Mar 3, 2006
  7. ryank

    ryank

    Coach,

    Since you are just sitting around waiting until next week to put on April positions:


    Alba demands Playboy pull magazines

    LOS ANGELES (AP) -- Jessica Alba is demanding that Playboy pull its March issue, saying she didn't agree to be on the cover and that the image may mislead readers into thinking she appears nude or partially nude in the magazine.
     
    #4067     Mar 3, 2006
  8. piccon

    piccon

    Volatility has been wild for the last 4 days or so. Up and down and down and up

     
    #4068     Mar 3, 2006
  9. I would definitely say MISLEADING. What the @#$% am I going to do with the 100 issues I ordered?!?!?!






    :D
     
    #4069     Mar 3, 2006
  10. rdemyan

    rdemyan

    Got filled today on the following:

    April SPX 1360/1375 bear call at $0.75
     
    #4070     Mar 3, 2006