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Ryan: Great link, thanks for posting it. I've been looking for this kind of data. Is there a similar chart for gaps upwards in the SPX? Thanks.

Andy: Which instruments have you found that are not correlated in the event of a disaster. I'm not experienced in differing types of investments, but maybe commodities would not react the same as stocks. With a major disaster, it seems like all stock indices would correlate and would drop...

Well said, Coach. Let's get back to the business at hand. I thought your were looking to place trade(s) today for October. I'm interested to see what you suggest. I've already got three of my own ICs for October and thought I would wait for your suggestion. Today's Friday and a fairly...

Phil: I've heard that the CBOE is planning to introduce a "quickie" or short-term SPX option at the end of October. I'm not sure what it is and I was wondering if you know anything about it.

Okay. So basically the midpoint is as I thought. If the credit spread b/a is 0.4/0.8 then the midpoint is 0.6. How about the natural. Using my previous example, what is the Natural.

Coach: Are we talking about a credit spread? If the listed bid/ask on a credit spread is 0.4/0.8, then your formula would calculate 1.0. Or was the formula your providing based on the bid of the sell option and the ask of the buy option. Maybe we need to be clear on what the bid/ask...

This is eye opening because in July I had to cover a short strike that cost me a fortune. I didn't know to even check the SPY just to see what it might have cost me had I had a SPY trade on instead. At the very least this discussion may make me reconsider how close I will allow my short...

I just realized I forgot the OEX. Is the OEX traded on more than one exchange? If so, then since it is virtually identical to the SPX, how about the OEX as an alternative. I forgot that I've traded it once or twice.

While waiting for an answer, I'll chime in with my very limited experience on ICs that I've traded on other indices. I've traded on the following: SOX MID MSH RUT While Dr. ZhiVodka is no doubt right on the difficulty of getting filled at the mid on the SPX whereas the others may be...

Okay. So if premiums are relatively the same across all markets and if the SPX is not competitive due to being listed exclusively on the CBOE (both statements make sense on the surface), which indices do you recommend trading credit spreads on. Or do you only advocate credit spreads on stocks...

Do not assume that readers of this journal are not interested in other strategies. However, we have seen too many postings from outsiders that criticize only yet offer few alternatives and even less hard data and results. If you have alternative strategies you want to suggest, by all means do...

Dr. ZhiVodka Here are my reasons for trading credit spreads on the SPX. 1) It is generally a slow moving index that does not gap relative to my OTM short strikes. I have a day job and cannot constantly watch the market. When I traded stock credit spreads I was constantly on edge. 2)...

Also got filled on the following today: SPX OCT 1125/1140 bull put spread at $0.45 I tend to go further out of the money on the put side of the IC because I'm jittery about a large gap being caused by a catastrophe. On the call side you generally don't see large gap ups in the SPX and...

Placed the following trade today: OCT SPX 1285/1300 bear call filled at $0.80 B/A was $0.55/1.25. I was filled in 2 minutes which suggests that maybe I could have gotten another nickel or so.

Clearly there is risk in trading, that we all know. I made some stupid mistakes in adjusting credit spreads in the past, partly because I have frozen up during the high stress period of trying to save my positions. But in following Coach's approach, I have learned to manage my risk and my...

Now with the SPX over 10 points, the b/a is 0.1 to 1.1. I still can't get filled on the OCT SPX 1300/1310 at $0.45. Frustrating to say the least.

Coach: I read your adjustment with great interest. In July I attempted something similar as a result of the July 7th bombing. As in your case, with only about a week left, I could only roll up 5 points and still have a net credit on the position. At that time, the SPX kept going up and I...

As a followup on my post with regards to the b/a and splitting this to get filled on the SPX Oct 1300/1310, here is some new information. With the SPX still up over 9 points the b/a is 0.05/0.65. Before it was 0.05/1.05, but only 2 contracts were bid for the 1300 while 53 were offered at the...

Andy: What are you trying to get filled. I just looked at the actual contract sizes for the b/a I posted earlier. For the 1310, the contract sizes are over 50. But for the 1300, the contract sizes are 5 or less (on the b/a just for this leg). I'm trying to get 10 contracts filled, so I...

With the SPX up over 8 points, I'm trying to get the following fill: SPX OCT 1300/1310 bear call spread at $0.45 Current b/a is $0.05/$1.05. No fill yet. I guess the MMs remember that they gave me a gift on my SEP 1115/1130 bull put spread about 2 weeks ago [filled at $0.50]:p