Today's spreads

Well, I placed a trade over at Optioneer, I doubt it will get filled but I put it in just in case.

My Questrade account had more activity. Seeing as I place call and put spreads separately one or the other will get filled if the price moves a bit in the direction of the spread. I placed a 116-118 call spread and it was filled pretty early as SPY jumped right off the bat. The put spread didn't go anywhere.

I later called and cancelled my put spread to free up buying power and decided to place another call spread, 117-118 for a smallish premium gain in line with the first 116-118 spread seeing as SPY had moved up $1 that would be about right. SPY peaked and was starting to head down a bit so I changed my mind while on the phone with the order desk...I should have just called back.

I goofed.

I wanted to take advantage of the jump in SPY by placing a 116-117 spread as the premium was setting up really nice as the discrepancy between premiums was large...too large. I ended up placing another 116-118 for an 13 cent credit...the credit for the 116-117... and ended up with 19 cents on the 116-118 instead...

I am not exactly sure how I managed that but I got in a hurry and was looking at the wrong column. For the exact same exposure the 116-117 with 20 contracts was $230 compared to the 116-118 at 10 contracts $160....DUH!

Because I got the net credit wrong the order executed right away so I didn't even get a chance to call back to cancel it and place the correct order. I now have two identical spreads one at 11 cents and one at 19 cents that will be combined somehow into one. Dollar cost averaging spread trades anyone? My spreadsheets do not accommodate this trade.

Advantage, if I have to close the 116 strike options they can be closed in one transaction instead of two I suppose.

Live and learn.

Jeff.