04-13-2022, 11:56 PM
(04-13-2022, 07:47 PM)NilesMike Wrote:(04-13-2022, 03:13 PM)Dividendwayfarer Wrote:(04-12-2022, 03:55 PM)NilesMike Wrote: Sold SPX Call spread after the open and bought it back near today's close for 45% of credit received.
20MAY22 4685/4695
Impressive! Any place you’d recommend me to start with trading SPX? I’ve been doing plain option trading (covered call & cash secured put without margin only). I want to acquire some knowledage/experience to take it to the next level.
This will help you out and keep you busy for awhile-LOL
https://www.elitetrader.com/et/threads/s...der.49586/
What I have cobbled together for this strategy is based on the theory that markets don't crash up. Very few options cycles sees SPX closing 5% the open of the cycle. Very few over the past 30 years in fact. Those that have could mostly be avoided if one didn't sell bear call spreads after a previous cycle was down significantly (>3% or so)
So my short strike is set 5% above the cycle open, long call $10 above and hold until expiration (unless I happen to get a quick hitter like yesterday).
One lot is usually worth $150 while risking/using $850 margin. By time it ever gets near you, if it ever does, you can easily roll it up and out.
Good luck, let us know if you find another winning strat!
Thanks! It’ll take some time for me to digest so yes it’ll keep me busy for a while.