McInnis 03 said:
12thMan86 said:
McInnis 03 said:
So any tips on what you look for on that end of day SPX debit spread play?
Sorry man, got busy today with work. I only do these trades when the guy in the Simpler Trading room does them. He had no idea on direction today, so we did nothing.
He uses his voo doo lines and Fibs as resistance or support. He also looks at what the market has done that day. Usually, he will let the market run into resistance or support, and at that point he'll place the spread trade.
It's not an exact science for sure. I have much more confidence in Bruce because he's been doing this for over 30 years.
explains why me shooting into the air yielded no ducks.
I feel your pain! Hell if I hit all the ducks I aimed at, I'd be retired!
Hes typically in the room from 1-2, and he usually will tell us what his plan is, but it usually doesn't trigger until the last hour of the day, typically the last 30 mins. That's when you can get in cheap, especially if you are essentially entering a counter trend trade. He says you need to watch the market all day to try and figure out what it "might" do in the last hour.
The fun ones are the Butterfly's he does. I've seen him hit several 10 pt wide butterflys that expire that day with CRAZY risk reward. Sometimes 10-15:1. Seldom less than 7:1. And he even pins them sometimes (meaning it closes right at the strikes he sold, or the body of the fly). His typical BF trades is .75 to 1.00 with max profit 10.
Unfortunately, I miss a lot of them, especially when times are normal and I'm not in front of my computer trading during Covid.
He also does fly's that are several months out. For example, he's got a 50pt wide fly centered around 2650 for July Monthly expiration. Right now you could buy that for 1.10. It's just a cheap hedge. The problem with Fly's is you have to time the price and time frame to really make out like a bandit. In other words, if the market was 2650 NEXT Friday, you'd think you'd make a killing. You would not, but you would make money. The Options you sell need time to decay. That's why the BF's on the same day are so cool, They strikes you sell decay fast.
I'm more of a swing trader....2 days to 2 weeks out. But the same day lottos are fun. Also as a disclaimer, and this works against me at times. I love to gamble. Most of us in here do. I've thrown dice for 25 years and this is even better.
Take care
