Vertical Spreads

Anyone trading Debit or Credit Spreads out there? I think they're great. Have lots of trades going at the moment, Bullish & Bearish, from 1 week to 7 months in duration, with Possible Net Gains of 11% to 177%.

 

.....go on.....

 

everything is great when your winning, wait until you take ur first loss and ull stop trading options. lol

 

Love to trade the box, one of my favorite strategies.

 

I didn't think anybody but MM could make money on boxes. Am I wrong?

 

Why would you think that? Market makers try to keep their delta neutral and adjust their gamma.

 

A box is delta neutral. It's a pure arbitrage play.

 

Haven't tried Box Spreads yet. Got killed on a SPY Iron Condor this week though. The big gap-up move on Wednesday went right through the Bear Call Credit Spread on Top, and SPY never fell back down. Ahhhhhh! My own fault of course. Shouldn't be trying to play a tight range (to make a few extra $) while things are so volatile.

 

slippage + commision is the buggest juice in option, far better than other things like theta, IV and etc.

 

You are right of course. Perhaps the OP got his terms confused.

Unless of course he is trading boxes in the OEX, which have a huge profit loss potential (or boxes in hard to borrow stocks).