SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
My bad, I confused you. I would need $0.55 in the 1200/1210 at 150 spreads to get the same credit as 300 of the 1210/1220 at .55.
Sorry for the $1.10, I should edit my own posts better lol..
Sorry for the $1.10, I should edit my own posts better lol..
Quote from 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 rallymode:
well that depends on whether you want to trade the regulars or the EOMsless liquidity in the EOMs so i suppose the regulars would be preferable.
Oh I get it... So I can trade both dates every month in ES, unlike SPX where there's only one expiry each month. And you're saying the regulars, ie 21 Jul and 18Aug is more liquid or popular and what most of you guys trade. Guess I'll stick with the regulars too
Yes, number 1.... not gonna be easy but we have help the first few months so I can ween into it slowly lol..
Quote from rallymode:
well that depends on whether you want to trade the regulars or the EOMs
Rally, one more quick question. Are the ES option prices dependent or based on the SEP ES futures and not the DEC ES futures?ie the nearest month. So if at expiry, July 21 1280 PUT is 20, does that means SEP ES Futures is at ~ 1260? Thanks
SPX option volume absolutely dwarfs ES options, both in number of contracts and absolute dollars.
The futures competitor to SPX are the full size SP futures options, which are pit traded just like SPX. CME is easing SP futures and options onto Globex. Once they do, it might have an impact on SPX spreads. But neither gives a rat's ass about John Q Public; SP and SPX are too big a market. CME has a product for John Q...its the ES and it does it's job nicely. CBOE is trying to catch up with the mini SPX, but the little fish in the XSP pool are still bound by Reg-T and a market that is less effecient than Globex.