SPX Credit Spread Trader

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

  1. not to sound mean or anything, but you should've asked that question BEFORE entering into this trade. As a matter of fact, you should know your exit before getting into any trades.

    as far as your question goes, there is only 1 day left in rut options. Your short strike of 800 is pretty safe in my opinion unless you expect yesterday's move to happen again tomorrow.
     
    #5261     Apr 19, 2006
  2. piccon

    piccon

    It's very volatile one. I think you will be ok here.

    If it's close between 787 and 790 before Friday, I would consider closing the Call. But for now you still have a good cushion.

    I hope this helps. Good luck

     
    #5262     Apr 19, 2006
  3. Hybone

    Hybone

    I am not sure why are you worried about the APR short 800 strike for the RUT given the recent run up and with only 1.5 days to exp. If you worry about it now, it :seems" to imply that you maybe a little too risk adversed for the RUT. Just my 2 cents. But I believe the 800 should be relatively safe for APR.

     
    #5263     Apr 19, 2006
  4. Hybone

    Hybone

    I love the RUT. I have had good success with it.

     
    #5264     Apr 19, 2006
  5. ChrisM

    ChrisM


    Dave,


    Try to compare models by calculating expected return distribution of your IC.

    Check also conversion of your bear call spread into iron fly and compare results.
     
    #5265     Apr 19, 2006
  6. rdemyan,

    I wanted to alert you to this, just in case -- for all 1256 type positions that are open at year end, you have to have them marked-to-market. In other words, you act as if you close those positions at year's end, and that's how you calculate your cap gain/loss on Form 6781.

    If you had 1256 type open positions at the end of 2005 in your OX account, please make sure they are M2M.


     
    #5266     Apr 19, 2006
  7. daved275

    daved275


    I do know my exit and did know it before I put on the trade. My exit is if it breaks above 790. I value everyone's opinion and just wanted to see what those of you that do iron condors on RUT feel about what the closing out price should be. It never hurts to get opinions from others especially when they probably have more experience. I learned a long time ago that you will never know everything and that you need to constantly educate yourself if you are to get anywhere.

    DAVE
     
    #5267     Apr 19, 2006
  8. daved275

    daved275

    Rallymode, piccon, hybone, and ChrisM,

    Thanks for all of your responses.

    DAVE
     
    #5268     Apr 19, 2006
  9. if that was ur strategy then why try to change it now? Just wait till it breaks 790, rut aint going over that this month. Just ask coach's cat :D
     
    #5269     Apr 19, 2006
  10. I get a bit self critical when I make mistakes while chasing pennies. Thanks for the compliments though.:D
     
    #5270     Apr 19, 2006