SPX Credit Spread Trader

I've been doing pretty well knock on wood. Short positions are at 1205 and 1320.

 

SPX just hit 1280 and keeps going. 1290?

 

As my good friend Bob would say, "This month sucked balls!"

 

1285 is the 50% retracement if you follow that sort of thing. A pullback after the huge drop off is to be expected and so far it seems to be a reasonable. TOday and yesterday we simply retraced Tuesday's drop. Each news item is gonna push us around like this until the Fed meeting which is after JUNE expiration.

Look for 1285 and 1295 as retracement resistance and 1300 in general is a resistance under the round numbers rule. If we have a huge spike in one day through it then the news that moved the market should be good enough to keep it going potentially. Personally we are going to churn like this for another week or so between 1295 and 1255..

 

I've only been in bear calls this month so haven't experienced any turbulence. I'm up 20% on margin risked this year so far (through May) and June is looking good.

 

Do any of you guys use IB for SPX AND use the spread trader to place your orders? In other words, the order is displayed as a spread - with typically purple quotes representing existing MM size and the natural spread?

I have a problem with the futures options spreads that I am discussing with IB, and I need to find out if I have my facts right about how the spreader is supposed to work.

Thanks

ktm

 

Is there any benefit in diversifying among 2 indices(RUT,SPX). I mean all the indices are moving alike. And when the heat is on we need to adjust 2 trades instead of 1.
so, is it better not to put all your eggs in one basket or put all your eggs in one basket and watch it closely?.

 

Heather, I've not been trading indexes all that long, but I've seen significant differences between RUT and OEX and SPX. There is much more similarity between SPX and OEX, but RUT seems to have a distinct behavior that is different for the S&P indexes. Just my opinion.

 

With indices such as RUT and SPX, there is going to be a lot of correlation in movement. the main differences are going to seen in amplitude. IOW, during a strong bullish run RUT might rise higher/faster than SPX. There generally isn't an inverse relationship between these two indices.

 

I've generally had bad experiences with the RUT. It's too volatile and the MMs are RBs. I'm only trading the SPX right now and am quite happy.