SPX Credit Spread Trader

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

  1. Position update:

    Just opened a june 1235/1240 bull put spread for $1.2 credit.
     
    #6801     May 19, 2006
  2. Just to share a bit with everyone what I'm doing on the call side.
    After looking at my positions

    5/15 BTO 1 June 1370 call @ .55
    5/17 BTO 1 June 1360 call @ .50
    STO 1 June 1355 call @1.15

    what I've decided to do is Buy this am the 1340's (filled for .90 just now) then when we go up the next week or two I'm selling the 1360's and another lot of 1355's for a 1340/1355/1370 call B-fly. I'm also looking to eventually work into a B-fly on the put side as once again we will be on vacation June exp :( so if I can get two B-flys for close to free...yea
     
    #6802     May 19, 2006
  3. ready

    ready

    Maybe I am missing someting But you Can't be long and short the same strike 1360?
     
    #6803     May 19, 2006
  4. ready

    ready

    also you expect the SPx to close by june above 1340 but below 1370?
     
    #6804     May 19, 2006
  5. ryank

    ryank

    Did you leg into this? The mid right now is .65, 1.2 is a great fill!
     
    #6805     May 19, 2006
  6. I did not close the spread actually. I started shorting futures going into the close and we bounced off a pivot point support in the after hours and floated higher so I pulled them off and just went with my gut that we would be flat to slightly higher at the open on Friday with lack of news and people needing to digest the past few days events. Also no one wanting to take on major posiitons before the weekend.

    I tried to be cute and scalp a little in the prop account on the 1250/1255 spread when the market was near 1320 or so. It was just out of my comfort zone and not in my normal trading nature and I almost had to eat a nice loss. Well it is a mistake I really would rather not make again :).

    So I will be putting a POST-IT on my computer with "1250/1255" written on it to remind me of what could happen if I try to get cute and sneak some premium out of the market. We were up to flat in the opening 30 minutes so far, so SET will definitely not be 6 points lower than the opening.

    Let my almost mistake be a lesson to all LOL...

     
    #6806     May 19, 2006
  7. Hi ready, I had bought the 1360's thinking to later sell a credit spread (hadn't originally planned on a B-fly)....so now I will sell the contracts I have to offset the cost of buying the 1340's (assuming the spx WILL go up...) my goal is the get a credit for the B-fly so if spx closes below the 1340 strike I will get to keep the credit. For all this to happen I do need the spx to go up...not looking good right now:( but my outlook is aprox 7-10days to give it a chance to recover)
     
    #6807     May 19, 2006
  8. rsflint

    rsflint

    Coach, we are in the same boat with this spread except mine is a 1245/1255. I tried getting out yesterday to no avail. Lets hope for a side-ways to slightly positive SET today! :)

    Rookie Rich
     
    #6808     May 19, 2006
  9. I bought back my 50 SPX 1355/1365 June Calls for .15. sold it when market was falling for 0.90
    I also sold 20 SPX 1215/1205 June PUTS for $1.

    In both cases MMs were generous, too generous, if you ask me.
    I asked .25 for 1355/1365 and they gave me 0.15

    and in other, i asked for $0.70 credit and they gave me $1.

    Do you think market will be more volitile in the near future. its like they know something i dont. Its making me nervous.
     
    #6809     May 19, 2006
  10. nope, no legging in. Placed the order at the open, got filled within 60 secs.

    The b/a was showing -2.4/.20 in IB TWS when i got filled.
     
    #6810     May 19, 2006