*****UPDATE***** 5/2/12

Today at the open I closed the May4  FAS 111-109 debit put spread opened @1.15  for 1.85 credit

That was a scalp of .70 cents and a return of .70/1.15= 61% gain

Sold to Close limit Credit@1.85

05/02/12 Bought to Close 5 FAS Put

Fas May 04 2012 109.00 Put
FAS May 04 2012 109.00 Put $5.55 05/02/12 Sold to Close -5 FAS Put

Fas May 04 2012 111.00 Put
FAS May 04 2012 111.00 Put $7.40

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This trade was a sort of hedge trade, against my already open May4 111/109 bear call credit spread trade which originally was used to open May4 105/104 debit put spreads at .04credit in a single 4 leg trade here https://3ddhedgeinvestments.wordpress.com/2012/04/30/fas-may4-combo-credit-debit-same-expiry-offset-plus-credit-trade/

Well upon this mornings open everything seemed calm and clear but then BOOM! Up the FAS, and all the others indices went in a concerted effort. Well when I was a rookie trader, I would have panicked, and not pressed into the 111/109 May4 debit put put spread @1.15 cost. But the very reason I decided not to panic is because of the VALUABLE insight, charts, and reports I receive on an almost nightly basis from  http://stockmarketforecasts.org/ .  https://twitter.com/#!/mktforecasts   insight today was spot on and said basically be careful longs, his informational analysis pointed to a decline towards the end of the day, which happened.

When, I say I this trade was used as sort of a hedge trade on my already opened May4 111/109 bear call credit spread, it was a trade to garner a quick 1 or 2 day scalp to play on overbought conditions. Once I placed the trade @1.15 debit, later in the day I set a sell back on the May4 111/109 debit put spread @1.75 credit. That missed by mere pennies near the end of the day today. We will see what happens tomorrow, and will try for 1.80 credit to sell back tomorrow.

If I get that overnight scalp of around .60-.65cents profit that will now have upped my breakeven on my original May4 111/109 bear call spread originally sold for .04 credit( which also originally bought me the main intended play of  the 105-104 May4 debit put spreads for free as well) to breakeven point of around 109.70ish on the May4 109/111 bear call credit spreads.

I would like to give a shout-out to a dear friend of mine, which banters trade talk back and forth with me. Hi also quite honestly very skilled at scalping abilities, @kwicklikebunny you did great today on your FAS 107 Puts which I mentioned to you to buy for a change. You are a hoot and enjoy all you bring to the table my friend! (I would have bought the 107 Puts but prefer spreads instead, he prefers straight up options, so gave him the 107  play instead.)

Regards

Creditspread23

05/01/12 Sold to Open -5 FAS Put

Fas May 04 2012 109.00 Put
FAS May 04 2012 109.00 Put $2.12 05/01/12 Bought to Open 5 FAS Put

Fas May 04 2012 111.00 Put
FAS May 04 2012 111.00 Put $3.27

 

Bought to Open Limit Debit@1.15

 

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