SPX Credit Spread Trader

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

  1. alp168

    alp168

    Hi all,

    Does anyone have problem with TOS platform or website today? I can't logon.

    Alp
     
    #4231     Mar 14, 2006
  2. Yeah I am watching it hit resistance as well and wonder if it will pullback for the close or break through. I doubt it will really break through strongly since the news that pushed the market higher was out at the open or so and I do not see any last minute strength coming in for no reason. In fact some profit taking and resistance shorters might come in anyway for a pullback.

    If no pullback today then look for it tomorrow. This will affect APR call spreads if we push to or above 1300. I have an order open for 1355 call spreads to take advantage of the surge but no fill yet as I am being agressive on the limit price.

    [​IMG]
     
    #4232     Mar 14, 2006
  3. alp168

    alp168

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    #4233     Mar 14, 2006
  4. One good rating in Barron's and it goes to h*ll...

    ...just kidding.

    They were having problems in the first 1/2 hour and again into the last 1/2 hour or so.

    I was logged in all day in between those times.

     
    #4234     Mar 14, 2006
  5. ChrisM

    ChrisM

    Maybe right,maybe not but many times if noone expects... the impossible turns into reality.

    I converted and reduced my upside hedge in anticipation of testing resistance level. Now, whatever comes...
     
    #4235     Mar 14, 2006
  6. Sailing

    Sailing

    Coach,

    Your opinion appreciated on our calendar diagonals!

    We've been dabbing into double diagonals as of late. Seems too good to be true. And we love volatility... it really helps this trade... the position takes in credit and profits through a tremendous range.... and risk is virtually eliminated. For example:

    For the current month!

    Bought 10 May 1350c, Sold 7 April 1320c for even
    Bought 10 May 1190p, Sold 5 April 1225p for even

    If market stays stagnant... about 4% return, assuming no volatility change. Shorts expire worthless, long positions will retain some premium for profits.

    Any movement towards short strikes... 5-15%
    At strikes.... 15-25%
    At lower put strike... with increase volatility... 30%
    Beyond strikes.... . could even be better!

    Love the risk profile of this trade.....

    Although the position is margin intensive.... the risk is so minimal... and if managed... non-existent.

    In fact, we're praying to the volatility Gods as we speak.

    Murray





    P.S.

    All six March spread positions expiring worthless...

    Current April Positions:

    SPX April 1190p/1200p = .60
    SPX April 1350c/1360c = .65
     
    #4236     Mar 14, 2006
  7. Maverick74

    Maverick74

    Guys, don't forget to congratulate Phil on passing his series 7!

    Phil is now ready to be a professional trader! Welcome to the world of haircuts Phil!

    Congrats! :D
     
    #4237     Mar 14, 2006
  8. Thanks MAV lol! They must have know me ahead of time because I swear I had like 30 option questions...

    I hope you guys have deep pockets because the first day I am selling 1000 SPX straddles and swinging for the fences! @%#$ it.... full steam ahead muwaaaaaaa....

    Looking forward to a haircut actually.

    :D
     
    #4238     Mar 14, 2006
  9. Murray, I am actually very interested and did not have time until now to look at it.

    Could you walke me through the ratio you chose for the long and shorts? Also, I would be nervous about the 1320 and 1225 strikes, how do the longs (without me running to an option pricing model) help out as far as delta protection and stuff if the market moves higher?

    You know me, if I follow it, I will have to do a real one to see it with real money ;)


     
    #4239     Mar 14, 2006
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    #4240     Mar 14, 2006