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Trading credit spreads, part II


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#1 cycletimer

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Posted 06 March 2018 - 11:37 AM

FWIW, Shortly after the open this morning (I dont post trades in real time any longer because if Im wrong and lose money I dont want anyone piggy backing my trade and losing money. It should be at my expense, no one elses); I sold the April $SPX 2820/2850 spread for a credit of 5.80
I tried to get them to hit my $6.00 limit order but after 5 min of no fill I ratcheted it down to $5.80

Theres a feel that this 2-day rally ended this AM on the open. Last evening my charts generated an upside DOW target of 25,038 but we never hit that level. I believe the next leg down started but Im not willing to buy puts, Ill limit my directional bet to selling call spreads for downside protection (for my Long REITs).

#2 q4wer

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Posted 06 March 2018 - 06:16 PM

now, it crashed, so your position is safe, all premium banked.



#3 cycletimer

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Posted 06 March 2018 - 08:44 PM

now, it crashed, so your position is safe, all premium banked.

It sure is!  WOW!  It'll be an interesting morning



#4 cycletimer

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Posted 07 March 2018 - 12:44 PM

OUT! I just covered the spread. I normally hold these much longer, most of the time thru option expiration but this news-related selloff may not last long and I dont want to overstay a short call position thats only 4% out of the money.
Im now eyeing several stocks to sell puts on.