Vertical Spreads for Aggressive Growth

Discussion in 'Journals' started by Cache Landing, Jan 27, 2006.

  1. Yeah, the one lesson I learned a while ago was that with CTM credit spreads it is worth offsetting them as soon as you can buy them back at 0.05

    With FOTM spreads giving up 0.05 is usually a pretty big chunk of the premium, but with ATM/CTM it is a small price to pay for peace of mind.
     
    #1011     Sep 14, 2006
  2. I was in the same boat with you with a 1330/1335 credit spread that was going to make good $. However, I bailed yesterday. Who knows, it will probably be a down day today. I wish i had a crystal ball.
     
    #1012     Sep 14, 2006
  3. Yesterday twice I put a bid in to close and twice withdrew it...futures are down this am so will be watching......:eek:

    the thing to remember with the vix where it is there probably will not be HUGH moves in either direction...unlike this late spring and summer when VIX was at high double digits
     
    #1013     Sep 14, 2006
  4. Rally,

    Decided to open more long calls in VIX today since we are at a super low level. Trying to decide how I want to set up the position on the next big drop. I don't think I'll hold out for it to reach 17 before selling some front month calls against my longs.

    We'll see
     
    #1014     Sep 14, 2006
  5. Semis and housing are going to make me sweat this one out today. (BTW, my real account still has some 1325/1330 bear calls :eek: )

    So far we've been in a nice tight range, but semis keeps trying to break out to the upside and if it does, SPX 1325 is just a piddle skip away.

    Goooooose Fraaaaa Baaaaaa..........
    Cache <---- massaging his earlobes
     
    #1015     Sep 14, 2006
  6. Forgive me for asking, but was is CTM? Close To the Money?
     
    #1016     Sep 14, 2006
  7. Yes, Close to the Money. A phrase that really only applies to issues like SPX where there really isn't that much difference between being truly ATM and being 20-point OTM. If you are only 20-points or so OTM on SPX it is like being 1.00 OTM on AAPL. So for all intents and purposes you're really still pretty much ATM. But since you are technically still 4 strikes OTM it wouldn't make sense to say ATM.
     
    #1017     Sep 14, 2006
  8. What is the ratriorionale for a HUGH move :)

     
    #1018     Sep 14, 2006
  9. Ratriorionale huh??? I love it when you speak french. LOL

    Seriously though, I think a HUGE move by definition implies IRRATRIORIONALITY.
     
    #1019     Sep 14, 2006

  10. ahhh, you dont listen, those back month pups dont move man. Just sit tight and wait, cash burning holes in your pockets? :D

    Scaling into my oct position here. Opened some es 1350/1355s for $1.83 average. Will add more after cpi/fed.
     
    #1020     Sep 14, 2006