SPX Credit Spread Trader

I tried some MNX debit spread; MM's didn't bite. Nasdaq is dragging the market lower but We should see the short term bounce any time.

I am waiting for CPI to decide what to do with my cash. But I will for sure enter some PUT SPread or debit calls by Friday.

 

If you are pretty good at catching directional moves you will be better off doing OTM debit spreads and turning them into free/credit flys once ATM/ITM.

Your directional fly wont gain much if anything even when it hits ATM unless you are in the last week.

Just my opinion.

 

Thats kinda how I'm thinking....right now (small size) since I bought the NDX 1650 I'm thinking tomorrow I'll buy the 1700 (calls) then when/if mkt moves up sell the 1675 body. But your right about the last week, on the paper trade for two weeks it just sat there and just in the last two days made all the money.

 

Were any of you guys selling SPX credit spreads during the most recent bear market? were you profitable?

 

What was the most recent bear mkt? 2002?

edit: in 2002 not selling spreads only CC's :eek: :eek:

 

I assume you're talking about 2000-2002. Yes and yes. But admittedly I trade a little different now.

 

how so?

 

Remember that for credit spreads it does not matter what type of market you are in since you can sell call or put spreads and do Iron Condors in sideways markets, as long as you are skilled at recognizing the trends and place trades accordingly.

 

No freaking volume in the spx puts...whatsup I'm gone for the day:eek:

 

What are you after? Perhaps we can cut the MM out and trade between ourselves? LOL.