SPX Credit Spread Trader

Quote from riskarb:

Simply refers to long wing strikes. You can be long gamma while short dgamma if short atm/itm strikes.
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Thanks a lot for educating me. I prefer short gamma with long dgamma. Never tried it though.
 
hey coach and others,

please forgive the ot question.

I am looking at a stock currently trading

bid 29.64 ask 29.68


jan 35 puts

bid 3.4 ask 4.3


why couldn't I just buy 100 shares $2968

buy 1 jan 35 put $430

total debit -- $3398


excercise the jan put for $3500

$102 gain- comm and excercise fees.

what am I missing??
 
Quote from newbie463:



what am I missing??
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Something is wrong.

Either quotes are stale (possible if your source is Yahoo).

Or, the option is the result of a spin-off and the underlying is NOT 100 shares of stock, but instead is 100 shares plus some quantity of another stock.

Mark
 
hey mark,

I just figured it out. I think the option quotes were just stale.

my quotes are from ox, but after looking further there is no open

interest in these contracts. If I bid the 4.3 for the jan 35 put,

there will be no sellers.

thanks.

newbie
 
Quote from rdemyan:


I briefly reviewed the info on Hoadley's website, but didn't see anything about the optionsXpress data feed.
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http://www.hoadley.net/options/develtoolsoxlanding.htm

I have an account with optionsXpress so does that mean I get a free data feed.
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Yes, 100 symbol limit though. I believe it's Hyperfeed repackaged somehow.


Also, I would assume that the Excel add-in is where one would set up the feed to Hoadley's add in.
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As per link above and other Hoadley docs, specifically Strategy Evaluation Tool.


Do you also have to do something within optionsXpress to activate the data feed.
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Account -> Profile -> Trading & Website Preferences: Site Access Via Software/XML API -> Check box.

Save changes.

Good luck!

MoMoney
 
For November, I will be looking at vertical credit spreads on the call side with strikes around 1425 if available for a decent credit. Time is at 28 days to expiration so I doubt I wil find much...

On the down side, nothing above 1300 for the puts.

If you are looking at diagonals for DEC/NOV I think 1400 is a good short strike and on the downside 1320 or thereabouts.



Quote from chrdso:

For Nov. expiration, anyone care to guess market direction?
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Test Trading the Following Diagonal:

BTO DEC SPX 1415 Call

STO NOV SPX 1395 Call

STO NOV SPX 1325 Put

BTO DEC SPX 1305 Put

Net Debit = $4.55 (Thinkorswim good fill with spread mid at $3.70 and natural ask at $5.50)


Never did the double so I want to test it out with 1 at a cost of $455.00
 
Quote from optioncoach:

[ Never did the double so I want to test it out with 1 at a cost of $455.00
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Phil,

I don't believe you can learn much from a test like this. It only shows the result from one specific example.

Mark
 
It is the only way to start really... I am also comparing it to a cross strike FLY and also comparing adjustments so one month is not definitive but I can only do em one at a time lol. Interestingly enough, the risk graph is very similar to a double cross-strike Fly using OTM puts and calls. So I want to see how they interact or correlate and what adjustments there are.

I will add more to it once the OCT expires and JAN becomes available.


Quote from dagnyt:

Phil,

I don't believe you can learn much from a test like this. It only shows the result from one specific example.

Mark
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