SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Yeah - that would be way to much to give up.
I am not really wanting or asking the brokers to change the "for record" accounting software. Rather, I just want a software button on my trading platform to temporarily ignore the synthetic tax basis adjustments coming from the broker's tax accounting and instead use the real honest-to-goodness original trade numbers that I originally got in with. This is just so I can visually "see" how the real account balances dynamically change relative to "real money" spent or credited or earned independent of the tax accounting or tax year "spin".
Its the same complaint I have with the wash sale rule that adds in an artificial basis to cost until the position is closed. It screws up the red/green and net position win/loss balances until the position is closed out. I'd like to simply be able to toggle the real nets on and off in my trading platform independent of all the hokey tax filtering to construct "what if" kinds of analysis.
As it is, I have to keep sticky notes all over my PC to help me track my "real cash basis" for each of these kinds of positions and to keep me from getting paranoid and thinking some broker is toying with my starting basis to scalp my credits as I get close to expiration. With a portfolio as large as mine (at last count over 150 separate long and short equity positions) its truly hard to visualize how one is doing on an individual position since the unearned credits from these spread trades gets absorbed into new equity purchases held in the same account. Trust but verify I always say ha-ha.
TS
This affords you the perfect opportunity to save yourself a great deal of mental anguish. You can manage positions based on current risk/reward - and adjust, hold, or close accordingly. It's certainly made my potfolio easier to manage.
As a bonus, it really helps take emotions out of trading - one of the essential ingredients for success.
Mark
Too many economic reports coming out this week as well as early earnings. So, punching out of my RUT positions early to capture profits here with RUT showing some profit taking.
This is my first ever RUT (IWM ISHARES) spread.
PUT (IOW) ISHARES TR RUSSELL JAN 73/76
Margin At Risk: $9,000
Initial Credit less cost to get out: .38-.10=.28/position
Net Profit $840
Net Return on Margin: 9.33%
Time at risk: 13 calendar days, 8 trading days.
Not a huge income but this is a better risk:reward return than my currently still open SPX credit spreads (open for 5 weeks) since it was open for a very short time and produced a 1% greater return for substantially less risk and better support technicals.
TS
This is my first ever RUT (IWM ISHARES) spread.
PUT (IOW) ISHARES TR RUSSELL JAN 73/76
Margin At Risk: $9,000
Initial Credit less cost to get out: .38-.10=.28/position
Net Profit $840
Net Return on Margin: 9.33%
Time at risk: 13 calendar days, 8 trading days.
Not a huge income but this is a better risk:reward return than my currently still open SPX credit spreads (open for 5 weeks) since it was open for a very short time and produced a 1% greater return for substantially less risk and better support technicals.
TS
Sailor, interesting info. I had no idea that Wiseoptions had so many problems. I apologize. I was only a member for a few months and both months I was successful and then I began to trade Short Iron Condors on my own. Very easy if you know all of the ins and outs. Most of the time you will just need to watch and collect but it is those few times when you need to adjust (roll up/down strikes, etc.) when knowing the correct steps is necessary. This is why I really liked the www.crowderinvestments.com site. The descriptions and sample trades that he uses in his White Paper and now in his newsletter are really a help to the interested trader. Why pay the big bucks when you can learn the strategy yourself. I came across his site when someone asked me to look at his ETF Extremes strategy (interesting strategy, seems to use the RSI (5) that he states on his daily blog). I purchased the White paper and low and behold came across his teachings regarding the Short IRon Condor strategy. I already knew how to trade the strategy (and I have to admit he could do a better job of advertising what is actually in the White Paper, but that is not my concern) but found it to be a wonderful resource. Anyway enough about that (don't want to give the guy too much free advertising). I have recently enjoyed reading the ongoing discussion regarding SIC's and look forward to hearing what you guys are trading. Again, I apologize for mentioning Wise, I had no idea that so many people had so many issues. I just speak from experience. Take care.
I told you it was already condensed into a word doc...abt 500 pages for '05 it needs further condensing. I'm thinking (after I get more toner
) to just print off what I like from the word doc but that will take time.congrats! Mark...very nice
...problem is now I feel as though all my posts are just clutter...sorry everyone 