I have NO analysis for xeo but your right the 585 does look rather close...right now 40% prob of exp itm...looks like you have a handle with the 570 bull put...sorry but have no good suggestions...
SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Donna,
Spot on. There are two embedded baby 75/80/85 flies.
If you do a 1 lot example you'll see how some of the baby fly strikes cancel each other out to result in the 70/80/90 pregnant fly e.g.
See Cottle for more info.
MoMoney.
Spot on. There are two embedded baby 75/80/85 flies.
If you do a 1 lot example you'll see how some of the baby fly strikes cancel each other out to result in the 70/80/90 pregnant fly e.g.
Code:
70 - 75 - 80 - 85 - 90
1 -2 1 (70/75/80)
1 -2 1 (75/80/85)
1 -2 1 (75/80/85)
1 -2 1 (80/85/90)
-------------------------------
1 -2 1 (70/80/90) Pregnant flySee Cottle for more info.
MoMoney.
Well then I will call my lopsided butterfly a PREGO FLY and let him have the pregnant fly for the standard one with all those embedded ones. Funny thing is that in person Cottle calls them "Butters" instead of Flys lol.
I just got my Cottle book yesterday and it looks really great, lots of color. The great thing about the book for me is that it focuses heavily on spreads and combos and the greeks and synthetics of the positions. Also has detail on market maket approaches- all quite valuable for taking your trading thinking to the next level. It is not easy material, I am re-reading passages a few times while looking at the charts until it sinks in.
As for Diamonetrics, it is not a cult lol. It is quite interesting and its a system he devised for finding butterfly or wingspread entries. It looks for convergences of upward and downward trends to forecast out those convergence points where the body of a Butter, as he calls it, would go. Look for a sample chart on the site of a diamond grid laid over a price chart to see it clearly.
Remember the "coachphil20" promo for 20% of the book if you are interested is still good until Feb 15th.
ALso, I had Cottle on the radio show yesterday to talk about the book. I will try and post the audio file if you missed it yesterday.
I just got my Cottle book yesterday and it looks really great, lots of color. The great thing about the book for me is that it focuses heavily on spreads and combos and the greeks and synthetics of the positions. Also has detail on market maket approaches- all quite valuable for taking your trading thinking to the next level. It is not easy material, I am re-reading passages a few times while looking at the charts until it sinks in.
As for Diamonetrics, it is not a cult lol. It is quite interesting and its a system he devised for finding butterfly or wingspread entries. It looks for convergences of upward and downward trends to forecast out those convergence points where the body of a Butter, as he calls it, would go. Look for a sample chart on the site of a diamond grid laid over a price chart to see it clearly.
Remember the "coachphil20" promo for 20% of the book if you are interested is still good until Feb 15th.
ALso, I had Cottle on the radio show yesterday to talk about the book. I will try and post the audio file if you missed it yesterday.
thx mo....ok Donna ALERT filled on Mar 1175(at 7:33 MST) for 2.20..overly generous to the MM
(single....legging in later)
have an idea I've been working on will expound tomorrow when I have more time...gotta run
(single....legging in later)have an idea I've been working on will expound tomorrow when I have more time...gotta run
The USP of the book for me is the dissection philosophy and the various dissection tools. There is/was a spreadsheet in the forums that he put together to help with position dissection. If you can get over the Open Office fiasco, well worth taking a look.
I know he's lurking around these forums now so I have to be careful what I say!: You're right, the material is not trivial but is totally worth pursuing as it is gold. However, I feel part of the difficulty of absorbing the material is not the complexity of the subject matter but the style in which it is presented. Do not be put off by it. I missed my opportunity to feedback on the new book when it was in draft so I should probably keep my mouth shut at this juncture. It's still one of the best options books out there. I'm sure your book is good too Phil LOL.
MoMoney.
I know he's lurking around these forums now so I have to be careful what I say!: You're right, the material is not trivial but is totally worth pursuing as it is gold. However, I feel part of the difficulty of absorbing the material is not the complexity of the subject matter but the style in which it is presented. Do not be put off by it. I missed my opportunity to feedback on the new book when it was in draft so I should probably keep my mouth shut at this juncture. It's still one of the best options books out there. I'm sure your book is good too Phil LOL.
MoMoney.
The trade was entered just prior to 4PM.
During last quarters earnings season, fills after the 4pm close appeared to be closer to mid than during the regular trading hours.
Not sure if this was due to after hours volatility in earnings annoucements... or the need to fill large orders for daily quota, etc.
This .85 fill on 1285/1200 was going for .60 during the day... after hours it was filled... on GOOGs annoucement, then by next days opening... the spread had returned to .60
Murray
Murray:
How did you do this?
My understanding is that SPX option trading ends 15 minutes after stock trading (4:00 PM Eastern time). So did you place the trade after 4:00 and got filled by 4:15PM?? [/QUOTE]
During last quarters earnings season, fills after the 4pm close appeared to be closer to mid than during the regular trading hours.
Not sure if this was due to after hours volatility in earnings annoucements... or the need to fill large orders for daily quota, etc.
This .85 fill on 1285/1200 was going for .60 during the day... after hours it was filled... on GOOGs annoucement, then by next days opening... the spread had returned to .60
Murray
Murray:
How did you do this?
My understanding is that SPX option trading ends 15 minutes after stock trading (4:00 PM Eastern time). So did you place the trade after 4:00 and got filled by 4:15PM?? [/QUOTE]
Good timing LOL. You should start charging for these DONNA alerts. Hope you don't miss out on completing the spread.
Quote from DonnaV:
thx mo....ok Donna ALERT filled on Mar 1175(at 7:33 MST) for 2.20..overly generous to the MM
have an idea I've been working on will expound tomorrow when I have more time...gotta run
Mo:
Actually in talking to Charles, I told him that my book is more like a precursor to his. Since I focus on adjustments and trading from the risk/reward point of view (straightforward profit and loss) it caters to the average retail trader who is focused on the profit or loss and adjustments to lock in profits, enhance profits or limit losses. That is why, to some people's chagrin, there is not any focus on greek adjustments since the average retail trader need not worry about the actual values but just what they are and how their positions are affected by them. Cottle's book takes it to the next level, IMHO and adds the analysis of synthetics and greeks as well as the MM point of view.
Honestly, I think the average trader should read and understand my book first and then go to Cottle, they will have a stronger foundation. If you are an intermediate to advanced trader with solid uinderstanding of greeks, synthetics and adjustments, then go directly to Cottle. Even though I wrote the book, I am the first to admit who it is appropriate for and what one can get out of it.
It is hard to write a book for all audiences so we chose to focus on the beginner to intermediate option trader and stock investor of all levels. This is where the learning curve is the greatest and is the group of people I personally made a mission to educate.
Actually in talking to Charles, I told him that my book is more like a precursor to his. Since I focus on adjustments and trading from the risk/reward point of view (straightforward profit and loss) it caters to the average retail trader who is focused on the profit or loss and adjustments to lock in profits, enhance profits or limit losses. That is why, to some people's chagrin, there is not any focus on greek adjustments since the average retail trader need not worry about the actual values but just what they are and how their positions are affected by them. Cottle's book takes it to the next level, IMHO and adds the analysis of synthetics and greeks as well as the MM point of view.
Honestly, I think the average trader should read and understand my book first and then go to Cottle, they will have a stronger foundation. If you are an intermediate to advanced trader with solid uinderstanding of greeks, synthetics and adjustments, then go directly to Cottle. Even though I wrote the book, I am the first to admit who it is appropriate for and what one can get out of it.
It is hard to write a book for all audiences so we chose to focus on the beginner to intermediate option trader and stock investor of all levels. This is where the learning curve is the greatest and is the group of people I personally made a mission to educate.