Plans are to "very cautiously" enter an SPX weekly credit spread either Thursday or Friday.
If market conditions are within the guidelines, I am planning to enter an SPX weekly credit spread for next week's cycle over the next couple of days. The trade will be for the May 1 cycle. The option code is SPXW140502, expiring May 2.
As of this writing, the current price of SPX is above the 20 day Moving Average, so we will enter a Put Credit Spread, as per the guidelines published on May 12, 2013. However, we still have to get through this evenings earnings reports, one of the potential market-movers being AAPL. As usual, I will wait until the market settles after the open and digests the overnight news and following economic reports:
8:30 am Durable Goods Orders
8:30 am Jobless Claims
It is a trader's choice as to exact entry time; I may wait until the afternoon to avoid the possibility of a late-day move negatively affecting the position on entry day.
I will look to sell a put credit spread with the short strike at a delta of -.15 or less, as long as the minimum credit of $.75 can be obtained. If the market has moved over a one-day standard deviation in either direction, the position will not be opened.
For those of you not familiar with this trade, the article can be found here:
Link to Articles
Events also appear to be heating up in the Ukraine, so a review of that situation and any breaking developments could also negate a trade entry. I recommend that any traders who follow/trade the weekly credit spread stay abreast of this and any "news" events that could affect the trade entry.
Trade entry details will be posted when the position is opened.
As always, stay keen on your risk management and trade carefully,