SPX Credit Spread Trader

There are many reasons why those two lots get filled. And the fact that the market was rapidly moving higher and lower is probably the best reason of all.

The MMs were far too busy to pay attention to ignoring or filling your two lot.

The question is whether YOU are here to learn or here to provide professional advice. Which is it?

Mark [/B][/QUOTE]


NONSENSE. The wide bid and asks are there for a reason, they just don't occur on their own doing. The main reason you get filled they don't want to lose out on bigger orders. Your smaller order has narrowed the bid and ask, now the profit drops, an institutional investor now hits your narrowed bid and the MM has to fill it. He lost tons of money on that. Whats his choice? Not to fill you and get you out of there fast ? Why don't you answer that question for me please.

I am here to teach you few things, which you are obviously unaware of in my opinion.
 
The problem is that you were trading expensive ITM puts. the best way out of the 1400/1385 put spread is to turn the position into a box by trading the call spread. Those options are OTM, lower priced, and easier to trade because the markets are not as wide.

Mark [/B][/QUOTE]


How are you going to turn that in a box when the bid and ask are wide enough for a MAC TRUCK to pass through on option expiration day ? No trading is possible, besides the option game is over in 2 hrs and everything goes to dust.

That is the most ridiculous reply I have seen so far.
 
Quote from day7793:

That is the most ridiculous reply I have seen so far.
More...

"Nonsense" or "ridiculous" replies are rare here, particularly when the replies are from former MM's.

The "SPX Credit Spread Trader" Journal has run its' course.

Anyone interested in a broader, more general "Spread Strategy" Forum covering a wider variety of Option Spreads?
 
Quote from MechTrade:

"Nonsense" or "ridiculous" replies are rare here, particularly when the replies are from former MM's.

The "SPX Credit Spread Trader" Journal has run its' course.

Anyone interested in a broader, more general "Spread Strategy" Forum covering a wider variety of Option Spreads?
More...


These former CBOE market makers are obviously upset at what was posted for public benifit and empowerment. Those replies are fit in the context they were made.

People trading " SPX credit spreads " need this information the most.
 
Quote from day7793:

These former CBOE market makers are obviously upset at what was posted for public benifit and empowerment. Those replies are fit in the context they were made.

People trading " SPX credit spreads " need this information the most.
More...

In case you haven't noticed:

1) Expansion of Electronic trading has caused significant downsizing of MM's at the Exchanges.

2) A lot of people with significant MM experience on the floor have been squeezed out of a job and are now using their knowledge (expertiese) to either trade their own accounts or to earn significant fees to mentor traders who lack knowledge of what really happens on the floor and which trade strategies offer the best R/R opportunity.

3) How many times do you have to be told that SPX Options are among the most inflexible derivatives traded before you look into NDX or RUT or other derivative options that have more competitive bid/ask spreads?

4) When someone offers the benefit of their hard earned knowledge via an opinion which may differ from your own, why get argumentative instead of just thanking them for their contribution and silently filing the new information away in your brain in case it might be relevant in the future?

5) The biggest value of a forum like this is the diversity of knowledge (or opinions) shared by all.

6) Many of the folks who post info here are trading above my level of knowledge, but with every tidbit they share, I am a net gainer!

Best...
 
Quote from MechTrade:

In case you haven't noticed:

1) Expansion of Electronic trading has caused significant downsizing of MM's at the Exchanges.

2) A lot of people with significant MM experience on the floor have been squeezed out of a job and are now using their knowledge (expertiese) to either trade their own accounts or to earn significant fees to mentor traders who lack knowledge of what really happens on the floor and which trade strategies offer the best R/R opportunity.

3) How many times do you have to be told that SPX Options are among the most inflexible derivatives traded before you look into NDX or RUT or other derivative options that have more competitive bid/ask spreads?

4) When someone offers the benefit of their hard earned knowledge via an opinion which may differ from your own, why get argumentative instead of just thanking them for their contribution and silently filing the new information away in your brain in case it might be relevant in the future?

5) The biggest value of a forum like this is the diversity of knowledge (or opinions) shared by all.

6) Many of the folks who post info here are trading above my level of knowledge, but with every tidbit they share, I am a net gainer!

Best...
More...


My post has nothing to do with the above. It deals with one issue, how to trade SPX without getting robbed. In case you didn't pick that up, please read again.

Good Luck
 
Quote from MechTrade:

In case you haven't noticed:

1) Expansion of Electronic trading has caused significant downsizing of MM's at the Exchanges.

2) A lot of people with significant MM experience on the floor have been squeezed out of a job and are now using their knowledge (expertiese) to either trade their own accounts or to earn significant fees to mentor traders who lack knowledge of what really happens on the floor and which trade strategies offer the best R/R opportunity.

3) How many times do you have to be told that SPX Options are among the most inflexible derivatives traded before you look into NDX or RUT or other derivative options that have more competitive bid/ask spreads?

4) When someone offers the benefit of their hard earned knowledge via an opinion which may differ from your own, why get argumentative instead of just thanking them for their contribution and silently filing the new information away in your brain in case it might be relevant in the future?

5) The biggest value of a forum like this is the diversity of knowledge (or opinions) shared by all.

6) Many of the folks who post info here are trading above my level of knowledge, but with every tidbit they share, I am a net gainer!

Best...
More...


My post has nothing to do with the above. It deals with one issue, how to trade SPX without getting robbed. In case you didn't pick that up, please read again.

Good Luck
 
Quote from day7793:



How are you going to turn that in a box when the bid and ask are wide enough for a MAC TRUCK to pass through on option expiration day ?

That is the most ridiculous reply I have seen so far.
More...

Had you understood options better, you would have looked at the call spreads instead of finding a way to fix your predicament two lots at a time.

The call spreads were NOT $3 -$4 wide. They were 'reasonable' under the circumstances. And you never know if you had entered a lowball bid for the call you needed most, you might have bought your 12 lot, savving you grief. Public customes do have a habit of selling calls in a panic, and someone might have sold your 12-lot.

If you choose to call an intelligent response 'ridiculous' that's your prerogative. But you are way off base.

It's easy to sling insults on an online message board. Try acting like an adult and just accept that people have different intelligence levels, different expertise and different trading skills. If you disagree with me, I don't throw insults at you. Please grow up.

Mark
 
[Why don't you answer that question for me please.
[/B]
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1) It was a statement not a question

2) Your mind is already made up, so no answer satisfies you.

3) I already answered in my previous reply.

The bottom line is that when the markets are moving rapidly, the MMs do not stand around and study the quotes, looking for two lots. They are busy trading. Those well positioned are busy making lots of money, those badly placed are scrambling to survive.

By the way, if a 2-lot is on the screen and a big customer comes to trade at that price, the MMs re not required to fill the order, nor do they 'lose lots of money'. A few of them sell small numbers to satisfy a 10- or 20-lot (or even a 100-lot is nothing split 20 ways) minimum and then the quotes are changed,.

I don't know where you get your ideas about what goes on in the pits, but it seems to me you get it from message boards and the opinions of other ill-informed people. At least that's how it appears.

Mark
 
Quote from dagnyt:

Had you understood options better, you would have looked at the call spreads instead of finding a way to fix your predicament two lots at a time.

The call spreads were NOT $3 -$4 wide. They were 'reasonable' under the circumstances. And you never know if you had entered a lowball bid for the call you needed most, you might have bought your 12 lot, savving you grief. Public customes do have a habit of selling calls in a panic, and someone might have sold your 12-lot.

If you choose to call an intelligent response 'ridiculous' that's your prerogative. But you are way off base.

It's easy to sling insults on an online message board. Try acting like an adult and just accept that people have different intelligence levels, different expertise and different trading skills. If you disagree with me, I don't throw insults at you. Please grow up.

Mark
More...


You have no idea what was happening, you threw in this CALL BOX Wallstreet gibberish and compounded a simple issue.

My post is about just one thing :

How to trade SPX and not get robbed.

I am focused on just one thing, rest of this is noise. You definitely undervalue all others who post here, assuming they don't know nothing about options and so on. That is one hell of a ridiculous assumption.
 
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