SPX Credit Spread Trader

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

  1. ryank

    ryank

    Even with all this downward action the last several days I still can't get out of my June 1380/1390 call spread for .05 (I'm way to stubborn to bump it up to .10). I put in an order late last week and still no luck (I actually forgot I made it a GTC order). At this point I'm going to just let it expire.
     
    #6601     May 17, 2006
  2. I like to reverse the credit spread like that on equities more than SPX. B/A spread hurts sometimes. Like I said on my journal, I normally wouldn't leg out like that with the longs still 15-points OTM, 1 day for expiry, but today the drop was easy to anticipate. Didn't want to get greedy though, just went for B/E.

    Just another point, it's usually easier to leg out of bull puts due to the IV increase as the index drops.
     
    #6602     May 17, 2006
  3. Looking at it, I would be surprised if you could get out of it for less than 0.15 right now.

    Wait until the end of the day today, IV will likely drop and you might be able to get the 0.05 fill.
     
    #6603     May 17, 2006
  4. Another note, it is also easier on the narrow 5-point spreads.
     
    #6604     May 17, 2006
  5. rdemyan

    rdemyan

    Yeah, I'm trying to get out of some really FOTM June bear calls and am having the same issues as Ryan. Cache, I think I'll take your advice as well.

     
    #6605     May 17, 2006
  6. I know, I know, it's super dumb to buy a call spread right after a plunge.... but, the high VIX seems to inflate the call spread premiums.

    A JUN 1335/1345 is 0.70.... any thoughts?
     
    #6606     May 17, 2006
  7. ryank

    ryank

    We are getting closer! Are you still thinking of going with this one? The mid is at a whopping .60 right now.

    EDIT: looks like the .60 was bogus from TOS, it is now $1.10
     
    #6607     May 17, 2006
  8. go to vegas instead :D
     
    #6608     May 17, 2006
  9. Looks like they might be trying to pin 1275...
     
    #6609     May 17, 2006
  10. Don't worry guys. I just bought some May puts. That means this market is about to explode to the upside. LOL!
     
    #6610     May 17, 2006