SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
You will no doubt share what you learned right? Isn't that what you were asking for before lol...
pricelessCoach
Is it true that you are leaning towards other strategies like DDs and calenders?. If so(even a little bit), can you please tell us how you are allocating your funds to different strategies?.
Is it true that you are leaning towards other strategies like DDs and calenders?. If so(even a little bit), can you please tell us how you are allocating your funds to different strategies?.
I have done some ratio diagonal spreads for volatility and directional plays in my prop account which I will wean down a bit. But in the retail account it is still mainly SPX spreads with respect to options.
I still not a personal fan of the diagonal SPX spreads but I have not dabbled in them too much so I might do more in 2007 and incorporate them here, especially with vols so low.
I still not a personal fan of the diagonal SPX spreads but I have not dabbled in them too much so I might do more in 2007 and incorporate them here, especially with vols so low.
i was pricing butterfly call spread on the SPX this morning and I saw the following : Jan 1395 1415 1435 butterfly call spread with a bid of .80 and the ask of 7.10
My question for those who trade butterflies how do you negotiate this spread? do you go for the mid point ? or do you start low and work your way up?
Thank you
Labib Imtanes
My question for those who trade butterflies how do you negotiate this spread? do you go for the mid point ? or do you start low and work your way up?
Thank you
Labib Imtanes
Labib, I think it would be pretty easy to get lost in that spread without a theoretical model to help you limit your bid. Was that the bid/ask for the butterfly, or for combining it's individual legs - brokerages like TOS will often give you an okay spread on a "complex" position like a butterfly if it is entered as a butterfly rather than individual legs. Currently I am using IB, and I find legging into spreads with them to be a huge pain in the a$$.
This am I legged into a 1455/1475/1485 Call BWB at a reasonable credit, but that was as much luck as anything. I would have preferred to enter it as a single spread order a la ToS...
For the diehard SPX Credit Spreaders, I wonder if anyone else is doing BWBs as an alternative to selling call verticals? A possible upside is that they might benefit from declining volty as the market climbs. Like diagonals, watching the market move toward your short strike isn't as painful as with a vertical.
Happy Holidays,
Ugly
This am I legged into a 1455/1475/1485 Call BWB at a reasonable credit, but that was as much luck as anything. I would have preferred to enter it as a single spread order a la ToS...
For the diehard SPX Credit Spreaders, I wonder if anyone else is doing BWBs as an alternative to selling call verticals? A possible upside is that they might benefit from declining volty as the market climbs. Like diagonals, watching the market move toward your short strike isn't as painful as with a vertical.
Happy Holidays,
Ugly
Hey Ugly, HH to you too. I'm doing something like that...either unbalanced or BWB flys as a "hedge" to FOTM credit spreads. As you say, its a bit more comfortable. However is yours the +1455 - 1475 + 1485 ? so your debit spread is 2X the credit spread? I do the opposite where I carry some risk by having either a wider credit spread or more contracts (in the credit spread) then adjust as the market allows.
How did you get a credit with a 20 pt wide debit spread and a 10 pt wide farther otm credit spread?
as one order to "buy" the BWB +1 1455 -2 1475 +1 1485 is $1.5 (mid at close) so you must have sold the fly? Its a real quandry whether to buy the complete order or leg...I've done both with mixed success and its very difficult to know after the fact if indeed you did good.
How did you get a credit with a 20 pt wide debit spread and a 10 pt wide farther otm credit spread?
as one order to "buy" the BWB +1 1455 -2 1475 +1 1485 is $1.5 (mid at close) so you must have sold the fly? Its a real quandry whether to buy the complete order or leg...I've done both with mixed success and its very difficult to know after the fact if indeed you did good.