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On our existing small trade of 3 $SPY 169 puts bought at .92 a few days ago; I did the following:

Bought to open 3 more 169 Sept13 Puts
Sold to open 6 168 Sept13 Puts
Net .08 debit

Now if SPY is less than 168 this week, we still have a shot for 100% or so gains, and if 168.50 can pretty much break even.


Bought $SPY puts

Bought to open SPY sept13 169 Puts @ .92 debit

Executed 1665/1660 Sept13 expiry debit put spread @ 1.50 debit.

Buy to open $SPX 1665 SEPT13
Sell to open $SPX 1660 SEPT13
Net @ 1.50 Debit

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I have no idea how this got filled at 3.70 credit! Its mid price was 3.25 credit, but it got filled in seconds! I had a limit order in for 3.60 credit and actually received price improvement.

So, this is a low risk loss wise $SPX In the money bear call spread for next week expiry. Max gain is $370 per lot if spx below 1650, and max loss is $130 per lot if above 1655.

Sold to open july20 $SPX 1650 call
Bought to open july20 $SPX 1655 call
@ 3.60 limit credit, but filled @3.70.

We’re still avoiding credit spreads like the Bubonic Plague right now. Sure there are some who still spit in the face of danger, but I still say no. Anyone who regularly plays weekly & possibly monthly credit spreads in this environment and not actively defending them. You might as well make a habit of picking up hitchhikers and inviting them into your home for dinner. In other words, you’re asking for a potential portfolio wreck, I still say no way, and wish to continue swing trading this crazy market.

Now that i mentioned, yet again on the blog about swing trading, there are a couple must follow traders, but the most active, happens to be @Northmantrader. He’s an excellent chartist and fun to follow, give him a try! Northman doesn’t engage in petty fights,is a straight up tell it as is guy, and feels the need for PROFIT!
Now on to another excellent trader that when posts any entries or exits, take heed. @Gssound isn’t a trader looking for glory, fame, or prestige. His simple motto, “Protect profit!” I consider myself lucky to have him on my side as a valued friend. His peer review before trades is always top notch, and consider @Gssound a great follow.

Thanks @Northmantrader and @Gssound as always for your top notch trading expertise.

Well wishes.

Credit spreads killed a lot of traders in the recent run up to multiple daily all time record highs, as day after day new records were being made with no end in sight. With that in mind, it was strategically decided that 3ddHedge suspend credit spread trades until this market was no longer Parabolic. The markets are now parabolic down as well as on the upside, and still not the time for new credit spread trades. Credit spread trades in this environment have to be defended on a daily basis, and on that note, I say “No thanks”!

Instead of posted credit spread trades, 3ddHedge has embarked on scalping long and short option trades lately. I’m not posting those on the blog, and instead just tweeting on Twitter.  The key to surviving in trading,  is being able to adapt. I took as many hits as a lot of other well known credit spread traders in this parabolic market the last few months, and had to step back and re-evaluate.

I am grateful to have a well rounded group of  twitter peeps I value, follow, and learn tons of valuable information from. You know who you are! 🙂

Kudos, and thanks to all my valued friends.


Very small 2 contract lots executed, I will be ridiculed for this play since Bulls can’t lose. If im wrong I’ll simply roll the play best I can to May18 Expiry.

Bought to open 2 May10 1625
Sold to open 2 May10 1620
Limit $3.55 Credit

Executed around the open, $SPX has continued to run here and now @ .90+ credit. 1620 will be heavy resistance. But in hindsight should have waited a little longer to write it.

When I saw the market start to pick up steam, was going to adjust the credit up some, but it executed too fast.

Bought to open 5 May3 $SPX 1625 Call
Sold to Open. 5 May3 $SPX 1620 Call

Limit .50 credit, but better credit to be had now.

Originaly received 3.25 credit today, exited on the massive rally @ 3.95 debit.

Bought to close 1590/85 May3
limit 3.95