Search results

Rally, Great post and analysis. One question: why do you say tomorrow will be a better day than today to open MAY put spreads... on a reversal? I assume you mean a reversal upwards....

Rally, It'd be great if you could post a similar analysis with a weekly chart of SPX.

Sailing, Now use 20% of your total credit to buy some May 1265/1275 (or 50/60 or whatever around that area) put spreads and good things might happen.

OK, I'll wait for an explanation. The confusion arises because the cash is supposed to be an amalgam of the 500 stocks that comprise it.... tail wagging the dog. Woof.

Today's action shows how the futures are being pushed down first, and then being followed by SPX (assuming there is no lag in my realtime quotes for SPX).... I'm still puzzled by how the SPX can be manipulated by the futures.

Looking at some put spreads, MAY 1195/1205 or 1200/1210 for 0.50, but wondering if this Iran/nuke thing will cause a meltdown.....

Nice, long overdue panic selloff underway.... as long as the mid-day reversal does not kick in. VIX moving steadily higher the last few days. [EDIT] The only issue with this selloff is that the bond market is substantially up today... hmmm.

Yes, but there are distinct advantages to using futures to hedge an upward move in the market whereas it's better to use SPY puts to hedge a downward move... because of the way VIX behaves in an upward versus downward market and because of put IV skew...

Coach, thanks... I'm actually following this thought from another thread... I should have mentioned that I'm considering using futures to hedge when the market moves UP (and towards my call credit spread). On the downside, yes, the methods you've outlined are superior.

Coach (and anyone else), Is anyone actively hedging their spreads or ICs when the market goes against you by going long/short the futures? If not, this might be a good expansion topic to consider?

ktm, I'm guessing you hold the futures overnight, perhaps for several days, as long as your trend-following indicator is pointing up? If you go long the futures and want that to travel with you dollar for dollar as the market moves up, you'll have to keep adding more futures to offset the...

ktm, We've exchanged posts on another thread and I found your advice to be excellent. You described how you create "profit zones" within a spread or iron condor by say, selling a put spread 70 points out and buying a fewer number of put (debit) spreads (say for $1 which can turn into $10). I...

Was tempted to sell some put spreads today but decided not to....... the market seemed "unhealthy" today...... am guessing we'll see more of this.

Why do you use IB?

ok, maybe because of the short covering that happens on Fridays......

What the TOS guys have told me is that the fill depends on what the SP futures is trading at, not SPX.

Thinking short term, I think Jason's thesis depends on whether we see a) the good 'ole intraday reversal that takes hold around 1:30pm EST, or b) a snap up 10 points or so on Monday If either of these two happens, we're still in a confirmed uptrend, not rolling over. By the way...

Rallymode, I'm debating about the monthly insurance versus buying, say, a whole year's worth at one time. The problem with the latter is that it will not react to a VIX pop nearly as much as a front month option...

Coach - this is quite clever. 1) Have you tried modelling it in the TOS Analyze page? 2) What are the tradeoffs of buying VIX options with 30 days-to-exp versus, say, 180 days?

Is anyone having success these days getting filled at TOS? It seems their software gives a mid, say $0.80, but when they call down to the floor to get a market, it's much less, say $0.55 :confused: