SSSSHHHHHHHHHH! Don't you know that the market makers secretly read this thread and do exactly the opposite of what everybody wants!
rallymode, Thanks for your advise. I am also looking at that option. surprising Dow has recovered. Hoping that it is closes positive. I want to wait for one more day.
cache, i guess my SPX "insert a low enough number here" before "insert a high enough number here" is a good indicator to follow LOL It's 2:0 track record so far Mantenar -> still in your spread? It appears you might've dodged a bullet this time around.
A lot of people expected today to be a reversal day and this confirms it... but I always wonder what the market will do when everyone is in the same camp......
20 minutes and up 2.50 Good call Rally. I figured the 1245 level would hold. Classic case of the lunchtime doldrums overreaction. I had no idea we would bounce this hard though.
I was contemplating a quick smack and grab job with the 1230/1225 june spread(it was going for >$2.2 mid at the low and vix >20) but was somewhat gun shy given i already had a 1240/1235 position that became ATM. If i had no positions i would've been on it like there's no tomorrow. I see plenty of resistance going forward though. Pretty much at every 10 round points on the SPX. Interesting days ahead for sure, nice long ass bullish hammer formed today on the daily.(not seen in years)
Rallymode, I am still in my credit spread. I have been watching SPX every few mins. MM seems to keep bid/ask very wide even for the options that are far way. Maybe because of volatity. Feels safe now as my short spread (1225) is about 30 points away. I want to get out of the trade tommorrow afternoon if SPX trade below 1245.
mantenar, vix is at 18+ so yeah the OTM puts are well bid up. You will get raped on your way out. Like i said before, you most likely dodged a bullet but keep this in mind next time you open a FOTM spread. Chances are you will be in this situation again and if the volty stays high, it will happen more often than you might anticipate.