I know I am the odd man out on here but actually one of my
favorite trades is on the SPX. A bull put credit
spread. Either open it and buy it back for less or let it expire
worthless and keep the credit. And here's today's profile up
close.
Posted by skitexas67 on 7th of Jul 2020 at 01:28 pm
I've attempted a few of these with mixed success. The
set-up is the key I suppose. Please, if you don't mind' can
you post here when you get into these? I'll try to play along
and see if I can improve my success. Thanks!
I will try and for that, but like anything you need to know
about it. There are dozens of kinds of spreads but I use credit
spreads only and decide on a short strike only after the B/O. just
like when you decide on a buy point. Usually my short strike is
where your stop loss would be in a trade, Then the long position is
placed underneath that 5 or 10 strikes below. This equals lower
costs and less volatility. You should do some reading on
it...VectorVest has a good course.
Not necessarily. Depends on the strategy. If I want the spread
to expire worthless and keep the credit, then yes I will pick the
shortest expiry, obviously, but if is a swing trade I will go out a
few. The credit I receive also plays a part.
I went for my run and just came back to find ES at L.O.D. Which
makes sense given the neg d i posted on the Naz. Personally I would
not recommend any B.P. SP on anything til we settle out and
see we are headed. Just M.O..
Well, here one I did this morning and yesterday. One of Matt's
idea. I like spreads better than just buying the outright, costs
less and is less volatile. But buy point is the same.
I'm a huge fan of spreads (mostly debit spreads, but some credit
spreads). However, I pretty much had to stop using them in client
accounts. One reason is that they are difficult to size correctly
unless account size is large (with the relatively large average PPS
these days). Also, when market crashes (happens regularly with the
Fed juicing everything these days), it is very difficult to explain
that the exploding vol is making the account look much worse than
it really is (unless forced to liquidate before expiry). I
definitely still use them in my personal accounts. Almost
exclusively.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
I know I am the
Posted by brophy on 7th of Jul 2020 at 01:03 pm
I know I am the odd man out on here but actually one of my favorite trades is on the SPX. A bull put credit spread. Either open it and buy it back for less or let it expire worthless and keep the credit. And here's today's profile up close.
I've attempted a few of
Posted by skitexas67 on 7th of Jul 2020 at 01:28 pm
I've attempted a few of these with mixed success. The set-up is the key I suppose. Please, if you don't mind' can you post here when you get into these? I'll try to play along and see if I can improve my success. Thanks!
I will try and for
Posted by brophy on 7th of Jul 2020 at 01:33 pm
I will try and for that, but like anything you need to know about it. There are dozens of kinds of spreads but I use credit spreads only and decide on a short strike only after the B/O. just like when you decide on a buy point. Usually my short strike is where your stop loss would be in a trade, Then the long position is placed underneath that 5 or 10 strikes below. This equals lower costs and less volatility. You should do some reading on it...VectorVest has a good course.
Are you normally just going
Posted by racerick on 7th of Jul 2020 at 01:42 pm
Are you normally just going with the next expiration date?
Not necessarily. Depends on the
Posted by brophy on 7th of Jul 2020 at 01:54 pm
Not necessarily. Depends on the strategy. If I want the spread to expire worthless and keep the credit, then yes I will pick the shortest expiry, obviously, but if is a swing trade I will go out a few. The credit I receive also plays a part.
brophy, what do you think
Posted by imelhoe on 7th of Jul 2020 at 02:23 pm
brophy, what do you think of July 17 297/292 bull put spread on spy? where do you think support may be best guess
I went for my run
Posted by brophy on 7th of Jul 2020 at 03:42 pm
I went for my run and just came back to find ES at L.O.D. Which makes sense given the neg d i posted on the Naz. Personally I would not recommend any B.P. SP on anything til we settle out and see we are headed. Just M.O..
I love spreads, let us
Posted by racerick on 7th of Jul 2020 at 01:11 pm
I love spreads, let us know if you see another you like.
Well, here one I did
Posted by brophy on 7th of Jul 2020 at 01:18 pm
Well, here one I did this morning and yesterday. One of Matt's idea. I like spreads better than just buying the outright, costs less and is less volatile. But buy point is the same.
I'm a huge fan of
Posted by jtsurfah on 7th of Jul 2020 at 02:33 pm
I'm a huge fan of spreads (mostly debit spreads, but some credit spreads). However, I pretty much had to stop using them in client accounts. One reason is that they are difficult to size correctly unless account size is large (with the relatively large average PPS these days). Also, when market crashes (happens regularly with the Fed juicing everything these days), it is very difficult to explain that the exploding vol is making the account look much worse than it really is (unless forced to liquidate before expiry). I definitely still use them in my personal accounts. Almost exclusively.