Jeff 7:04 am on Friday, October 27, 2017
Tags: SPXcampaign ( 2,265 )

SPX reverse roll

#SPXcampaign Soon after the open, closed $SPX Oct 31st 2575/2600 call spreads for 3.50. Sold for 3.05 on Wednesday.
Sold to open Oct 31st 2565/2540 put spreads for 3.70.

Also, in pre-market, closed on GTC order: Nov 3rd 2480/2455 put spreads for .40. Sold for 1.55 on Oct 6th.

whitemare 10:02 am on Friday, October 27, 2017

In general, is it better to roll ITM call spreads on an up day or down day? I have Nov 10 2550/2565 call spreads and seems fairly cheap today to roll out a week or two…
thanks for your thought
- Jeff 10:18 am on Friday, October 27, 2017
  
  Neither… it is better to close a call spread on a down day and sell a new one on an up day. Since you normally roll on the same day, the best you can do is anticipate intraday swings. I did the split day on a few spreads this week, because it looked so clearly like a bounce on Wednesday afternoon that I closed a couple call spreads and sold the rolls on Thursday. Shoulda waited for Friday!
  - rck89 10:32 am on Friday, October 27, 2017
    
    Mmm? I think selling calls on an up day makes sense, unless that particular “sales day” is followed by a series of new up days. This has been the case for the the last month or so. When this happens, you wind up getting your face ripped off, unless one is a nimble in the markets are you are. Unfortunately, this situation just happened to me last week. Not fun.
    - Jeff 10:36 am on Friday, October 27, 2017
      
      Yes, selling on up day is definitely best, but he asked best day to roll, which is hard to answer since a roll involves both buying and selling. Face-ripping is the new black in this relentlessly bullish market. Best I can do is roll UP to higher strikes each time, and eventually catch up to the market, unless the market dips down to me. I don’t consider myself too nimble when I get in these situations!
      - rck89 10:43 am on Friday, October 27, 2017
        
        So how high does the market go, based on your most recent signals? Your put sales today at (or before) the open were brilliant!
        
        Jeff 10:48 am on Friday, October 27, 2017
        
        How high is always tough to answer. We’ve already gone above the average height after the 9/22 Upside Warning. Secondary confirmations like we may get today and/or next week usually are good for 1-3% higher, but they’re not as certain as the initial Warning.
        
        rck89 10:57 am on Friday, October 27, 2017
        
        Wow…20-60 pts on the S&P would be something. What about just buying this a call or debit spread on the S&P this time around?
        
        Jeff 11:01 am on Friday, October 27, 2017
        
        I try often but usually don’t choose strikes or timing well enough. Always an option. typically stay pretty cheap and only profit if the strong move comes quickly.
        
        rck89 11:05 am on Friday, October 27, 2017
        
        Thanks….guess I’ll wait. No reason to go long into the weekend. Got enough longs including $CVX – probably the only big oil stock that down!!! Don’t know why? Thanks…your comments are really helpful.

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