Search results

I just have a better feel for the XEO. 1) The channel it trades in seems to be well defined. 2) I can go just out of the trading range, with 5 point spreads, around 20-23% probability and get around 1.20 credit. 3) If the index closes outside the channel - breaks the range - for a...

I enjoy reading your posts too. I have learnt a lot. So, don't keep quiet. I trade 5 point XEO just OTM and have done much better that the FOTM SPX trades. But, I am not comfortable trading the SPX just OTM. So, will continue with FOTM only bear call trades on SPX.

Heather, Sorry to hear what happened. After watching the market move. I have decided to only play bear call spreads. Maybe put diagonals and cheap put butterflies. No more bull put spreads unless: 1) we break to the upside - out of a long downtrending channel 2) we start a new...

So, to open diagonals you: 1) Check the volatility range of the index (for the long month ..?). Buy when the volatility of the long is at a low point. 2) Also, open when the stochastics are turning down (at the top of the range). Looks like this is when you opened the June/Jul diag...

Piccon: I trade with OX and TOS. But, I like TOS much better because: 1) Its easier/faster to see the option chains. any month, and widths. Faster/Easier to create/modify and execute a trade. You get the mids. Not with OX. 2) Great probability analysis and risk profile graphs...

at OX SPX 1345/1355 @.85 mid was 1.05. Could not get filled higher at OX at TOS XEO 600/605 @1.05 mid was 1.10 XEO 575/570/565 P butterfly @.30 (cheap bet for a downward move) mid was between .15 and .20 Closed April spreads: XEO around 16%. SPX around 6%

That post sounds like Riskarb. Have to read it again and again. Its like debugging C# code...........

Thanks, rally. Trading with technicals sure helps.......

As you can see and as i said before, i use the last 3 month trading range and enter my trades using technical analysis. My favorite entry is after Hammers as you can see from the charts. The bullish/bearish engulfing patterns on the chart seem to be pretty accurate also. Also, notice...

Hi, Thanks for sharing your strategy. It would be great to read updates on your trades. I have used a similar strategy on the XEO (works great when it is rangebound). Definitely better returns that the FOTM spreads on the SPX that I also trade. But, the XEO trades have needed more...

Murray, What about a call side credit spread and a put calendar? In a ratio of 5(or >) to 1. This way the credit spread pays for the calendar +some. The calendar increases in value with increased volatility. No fear of a "black swan" event because the credit spread will bring in more...

Very interesting.......... So you have 2 calendars at 1375 And 8 embedded spreads = 8 calendars at 1340 8 bear calls 1340/1375 which basically pays for your calender with some additional credit or breakeven maybe..... I put this trade in TOS, Looks...

Also had XEO 595/600 for .85. Held on till the end............... Closed SPX 1320/1325 earlier. Lesson learned - close at 80% profit OR at .10-.20. I have been trading both SPX and XEO, but profits seem to be more in XEO. My April spreads may be in trouble. I have the XEO 595/600...

Murray, If you were doing a 1:1 double diagonal and the market is near your short strike: 1) When would you adjust (at short, between short and break even? ....?) 2) How would you adjust? (roll short to create a calender? double calender? ......?) Thanks

I had an order in this morning for SPX 1340/1350 @.90 also. Did not get filled even when the spread was at 1.05. I reduced from .90 to .85 to .80 to .75. Finally filled at .70. I feel the market will move sideways/down in April. That's why I wanted a fill on the call side. I will...

Coach, This strategy seems to work well in a range-bound market. What credit spreads do you have for Apr.? Donna, do you have any positions on for Apr.?

Riskarb's combo to fly conversion journal ....?? No PUT spreads for March either. Just closed SPX 1320/1325 Still have XEO 595/600

The straddle could be bought back for 8.30. So, 11.10 - 8.30 = 2.8 profit (would be more without the original strangle purchase to reduce margin) The conversion to iron butterfly locked in 2 with a potential for 5

Coach, I paper traded the idea of selling an ATM straddle, later converting to an iron butterfly......... 1) 2/15/06 : Sold the Mar. 580 C/P XEO straddle for 13.10 (Because of high margin reqs., I added a far OTM strangle to reduce margin) 2) 2/15/06: Bought Mar. 605C/555P strangle...

I'm also at SPX 1320 (and XEO 595) for Mar. SPX may be close. But, I will not adjust unless we close above 1300. If XEO closes above 590, may have to adjust there too. I have also bought DJX puts. Seems overbought...............