SPX Credit Spread Trader

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

  1. ChrisM

    ChrisM

    In June "Futures" article "The options dilemma" comparing SPX options vs. ES.

    If someone pointed that out before - sorry, I recently have had no time to follow the thread post by post.

    If someone don`t like the article - do not shoot me with your sarcasm please. Just dont read it.
     
    #8191     Jul 2, 2006
  2. cdowis

    cdowis

    Another lesson learned.

    The Aug 1220/Jul 1240 put diag spread was filled to add to my previous position. I once more looked at the profile for the entire position == it looked really terrific, too good to be true.

    And discovered that I had made a "slight" error in how I entered it.

    Ouch! I had the expiration reversed. I had double-checked everything except where I placed my expiration date.

    Risk vs reward is now worse. Unless the market decides to fall below 1230 within the next week.
     
    #8192     Jul 2, 2006
  3. Wow! That's a lot of apologies and disclaimers... do you really care that much about what anonymous message board readers
    think about you???



     
    #8193     Jul 2, 2006
  4. I guess I'm a little :confused: so you have a LONG Aug 1220 and a Short July 1240 put diag or is it a SHORT Aug 1220 and a LONG July 1240:confused:
     
    #8194     Jul 2, 2006
  5. ready

    ready

    Chrism
    Can you post link to article.
    Thanks
     
    #8195     Jul 2, 2006
  6. cdowis

    cdowis

    Let me post the entire position:

    L Aug 1330, S Jul 1310 call

    L Aug 1220, S Jul 1240 put.

    Market is presently at 1280 (SP futures).

    My initial position was the call diagonal, adding the put side on Friday. In my software I accidently reversed the expiration on the puts.

    Oh well, the risk profile is tolerable on the down side, especially if volitility increases. Only two weeks to stay above my short, and then do roll-over in Aug.
     
    #8196     Jul 3, 2006
  7. ChrisM

    ChrisM

    Im just getting tired of useless discussions, such waste of time and energy.

    Whoever wants to use it, he`s welcome.

    Im currently on business trip, will give you link later on.
     
    #8197     Jul 3, 2006
  8. rdemyan

    rdemyan

    Congrats, Coach. Best wishes to you, mom and baby.
     
    #8198     Jul 3, 2006
  9. ryank

    ryank

    Only 17 days to expiration so time to put on July positions has pretty much passed for FOTM credits. Here is what I am finding this morning (going roughly 2 sigmas out):

    1210/1220 July put spread = $.50 mid
    The 1220 short has a probability of expiring OTM of about 10%

    1330/1340 July call spread = about zip, maybe a very small credit.
    The 1330 short has a probability of expiring OTM of about 3%

    Going closer to the money:
    A 1310/1320 July call spread has a mid of $.75 right now. The 1310 short has a probability of expiring OTM of about 11%.

    I think I will most likely be passing on any July plays, August is 45 days out and my preference is to shoot for the 45/15 day cycle instead of a 30/expiration cycle. I haven't looked at August positions yet, will do that tomorrow or Wednesday and see if anything looks good.
     
    #8199     Jul 3, 2006
  10. Hey Ryan..its interesting with a low volume day I've gotten a couple of fills...finally got a good chance to roll down my 1245put to 1235....at least getting the target off my back:) also got filled on 1310/1320 calls...a little close to the money but with decent credit. .85. I guess with the "big" boys away we retail mice can play:p
     
    #8200     Jul 3, 2006