SPX Credit Spread Trader

[El OchoCinco]

It is all relative really. If I was doing SPX I would have looked to go below the low of 1218 and maybe look at 1210/1200 strikes and the equivalent credit would have to be double the ES quote.

Remember ES is $50 a point and SPX is $100. So I woul dhave done 150 SPX spreads, not 300, for the same margin and therefore I would have needed $1.10 SPX credit to have something similar ($150,000 margin a strike or two outiside of the lows).

Quote from RichardRimes:

dumb question here coach but is this ES trade comparable to say a 1210/1200 "cash" spx trade..IOW since ES is ~ 10 pts higher than the cash trade are the options also roughly 10 pts higher? thanks RR

 

[RichardRimes]

I had forgotten ES is $50 thanks..

 

[scoobie27]

Can anyone pls help with IB?

Im trying to select the expiry date on Option Trader platform.

For July, There is July 21 and also July 31. For Aug there is Aug 18 and Aug 31. So which is the correct expiry date for July and Aug?

 

[rdemyan]

Coach:

If we can assume that because the ES is about 10 points higher than the SPX, then an equivalent trade on the SPX might have been the 1210/1200. Mid on that is $0.45.

However, you're saying that $1.10 would be required to match your trade. If the equivalent trade assumption is correct, then this is a huge difference.

I must be missing some things here, because if this is typical, why would anyone trade spreads on the SPX versus the ES?

Quote from optioncoach:

It is all relative really. If I was doing SPX I would have looked to go below the low of 1218 and maybe look at 1210/1200 strikes and the equivalent credit would have to be double the ES quote.

Remember ES is $50 a point and SPX is $100. So I woul dhave done 150 SPX spreads, not 300, for the same margin and therefore I would have needed $1.10 SPX credit to have something similar ($150,000 margin a strike or two outiside of the lows).

 

[dagnyt]

Quote from scoobie27:

Can anyone pls help with IB?

Im trying to select the expiry date on Option Trader platform.

For July, There is July 21 and also July 31. For Aug there is Aug 18 and Aug 31. So which is the correct expiry date for July and Aug?

3rd Friday is traditional expiration.
Other is 'end of month' expiration.

Mark

 

[rallymode]

Quote from scoobie27:

Can anyone pls help with IB?

Im trying to select the expiry date on Option Trader platform.

For July, There is July 21 and also July 31. For Aug there is Aug 18 and Aug 31. So which is the correct expiry date for July and Aug?

july 21 is the regular option contracts, the 31's are the EOM's (end of month expiration)

 

[scoobie27]

So Im only concerned with July 21 and Aug 18 for my actual trading of ES options which is similar to SPX expiry dates? Sorry for newbie questions.

 

[rallymode]

Quote from scoobie27:

So Im only concerned with July 21 and Aug 18 for my actual trading of ES options which is similar to SPX expiry dates? Sorry for newbie questions.

well that depends on whether you want to trade the regulars or the EOMs less liquidity in the EOMs so i suppose the regulars would be preferable.

 

[momoneythansens]

This could be the explanation you are looking for:

http://www.elitetrader.com/vb/showthread.php?s=&postid=1120881#post1120881

Quote from rdemyan:

Coach:

I must be missing some things here, because if this is typical, why would anyone trade spreads on the SPX versus the ES?

 

[rallymode]

Quote from rdemyan:

Coach:



However, you're saying that $1.10 would be required to match your trade. If the equivalent trade assumption is correct, then this is a huge difference.

I must be missing some things here, because if this is typical, why would anyone trade spreads on the SPX versus the ES?

i think phil was refering to the absolute amount of the credit not the credit per contract.