Enterd Call Credit Spread in SPX

It's been a long time but just trade the my call credit spread in a long time. A bit cautious but getting in slowly. SPX is moving up and has already mad a substantial move. It's up around 70 points from the July lows.

I entered 1025/40 call spread giving $0.80 per contract. If it works out should be a nice return of 5%. The order is way above the 161%fib extension. The idea is the time would be lost by the end of the contract which has 35 days to expire.

Time to sit and watch.

Ready to trade again

I've neglected my options trades. The market has been consolidating and has now broken out give me a direction on where to place my trades.

RUT has broken to the upside and a bit sluggish it is a good few points away from the next resistance at 570 which is the 127% fib extension.

MACD is above 0 and histogram is also above 0, with momentum rising. The market is an uptrend, so will try and place PUT order if there is enough credit and also place Call order much higher to avoid getting touched.

No Fill on RUT

RUT rallied today and I never got the fill. This changes my tactic. I will now be waiting to enter the Call credit spread when RUT hits resistance.

RUT PUT Credit Spreads

Click to enlarge

RUT June options contract have 31 days to expiry, hence plenty of time value in them. Based on the technical situation I placed to the following order:

Sell to open 380 June puts
Buy to open 370 June Puts
For credit of 0.42 per contract

I will Wait to open call positions if the RUT rallies.

Technically RUT has had a big rally and will possibly retrace a bit. I've placed my orders below the low of the 23% retracement area, which is also below the 20MA.

If RUT reaches 539 I will open the call positions.

Still waiting

It's been 2 weeks since my options expired, I've not placed trades yet for a reason. I'll be moving to a safer strategy and be protecting my positions hence doing a bit of reading and back testing.

Options Expired

RUT options have expired so I get to keep all the premium. Will wait for settlement price to come out, which is Saturday morning (UK).

I should have a very nice return on this.

2 days to go

(click image to enlarge)

As I write only 2 more trading days to go. The market is currently at 468 which is still in safe areas as long as it holds below 471 the weekly resistance line. The price has also approached the downtrend line and will possible pull back sligthly before a breakout if any. There is still a 50 point cushion to reach my short call at 520.