SPX Credit Spread Trader

Quote from andysmith:

Vix popped up by 0.70.... how could premiums drop?
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I'm still scratching my head over this one. The index was up about 2 points this morning and dropped to just under 0 and the mid dropped while I was watching it. I still can't figure it out. Now afterhours (I was away from my computer most of the afternoon so I'm sure this happened in the afternoon) it has popped back up to where I would expect it to be.

ryan
 
When you lowered your strike choice you got even less premium, isn't that correct. Don't you mean that you raised your strike choices so that you could get the premium you were looking for?


Quote from ryank:

On Thursday and Friday last week I was trying to get the 1195/1205 filled at .10 under the mid with no luck. Tried again this morning and watched my order go unfilled for over 30 minutes (at .10 under the mid) before the premium evaporated. When the market started dropping this afternoon I lowered my strike choice and I did get filled on the 1190/1200. Now I am looking for this Santa Claus rally everyone keeps talking about. :)

ryan
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Quote from rdemyan:

When you lowered your strike choice you got even less premium, isn't that correct. Don't you mean that you raised your strike choices so that you could get the premium you were looking for?
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With the drop in the market today I was able to go 5 points lower on the strike and get the same premium I was looking for on Thursday/Friday. With the drop I am still roughly the same amount away from the current index level with the same premium. Unfortunately a little frustration came into play with not getting fills Thursday/Friday where I wanted and that is where mistakes are made. I was filled mid-morningish, if I had access to a computer this afternoon and waited I could have gotten a higher premium with the 1195/1205 assuming I could get a fill (which I couldn't get last week to save my life, starting my frustration). So the long and short of it is, I got the premium I was looking for at a distance from the index I was comfortable with at the moment I placed my order. Could I have gotten more premium, sure in hindsight. But at the time I placed my order I got what I was looking for based on my read of the market. Sitting here and typing this now I see that I could have done better looking at the closing numbers and seeing what happened in the afternoon :mad:. What's done is done so I will chalk this up as another educational lesson given to me by the market. Right now I will follow the market and look for an opportunity to roll up if the market makes the expected move higher. I'm not looking too hard for call spreads yet, might look harder late in the week after more economic data comes out. Might be nice to get a call spread on and let it melt over the long weekend but I have to be careful and not force a trade that isn't there (a common weakness of mine). I think I need to start one of the relaxation techniques some of you were talking about (I guess thinking bad thoughts about market makers doesn't count :D).

I do have concern with SPX closing under the short term moving averages (10 and 20 day I believe) today. We have some economic news coming out Tuesday before the bell so that may provide some direction to the market (hopefully up). Andy mentioned recently after a review of the weekly chart that we may be due for a pull back, at the moment his timing looks good.

ryan
 
Quote from andysmith:

Is it just me or have the thinkorswim support people gotten a bit grumpy?
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The trading desk people at Optionsxpress were grumpy last week, maybe it's a bug going around.

ryan
 
Basically I found that when calling the TOS trading desk for SPX quotes you need to treat it like the soup Nazi on Seinfeld. When they answer the phone simply state your month, strikes, sell/buy and ask about the floor bid ask spread and then step back and wait.

If you start asking questions or chatting they will scream "NO QUOTE FOR YOU!" and hang up.
 
Don said at the options seminar that they have added new support people...I think they probably have their hands full...also opra is having a problem with options feed which I guess you all alread know...
Quote from optioncoach:

Basically I found that when calling the TOS trading desk for SPX quotes you need to treat it like the soup Nazi on Seinfeld. When they answer the phone simply state your month, strikes, sell/buy and ask about the floor bid ask spread and then step back and wait.

If you start asking questions or chatting they will scream "NO QUOTE FOR YOU!" and hang up.
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Talking heads on CNBC are saying that since 1969, the market has averaged a 1.7% increase during the last 5 days in December and the first two days in January (Santa Claus rally). I didn't catch which index (might be the Dow).
 
Coach and others,

Now that you've experienced OX and ToS.... do you prefer one over the other for trading options exclusively?

I seem to get better fills and better service with ToS.

Also, TradeStation is getting into the game now. Their OptionStation is now included in it's FREE tradestation software provided you trade 50 option contracts a month. They also have no minimums or fees, and option contracts are $1. This is very appealing...

Any thoughts?

Murray
 
I like ToS much better. Better fills, better service than OX. Currently pay $1.25 per options contract at both OX and ToS.

Don't know about tradestation.

Quote from Sailing:

Coach and others,

Now that you've experienced OX and ToS.... do you prefer one over the other for trading options exclusively?

I seem to get better fills and better service with ToS.

Also, TradeStation is getting into the game now. Their OptionStation is now included in it's FREE tradestation software provided you trade 50 option contracts a month. They also have no minimums or fees, and option contracts are $1. This is very appealing...

Any thoughts?

Murray
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