SPX Credit Spread Trader

[yip1997]

Quote from damon_achey:

Ah, in that case advance the date above the wrench to the desired date.

PS. TOS chat help is very good at these kinds of questions.

EDIT: I think you need to unlock your price, I'm showing a 4.30 Credit for that, not a 7.xx debit and it's probably part of your problem.

I saw 4.3 there too when unlocked the price, but I don't think you will get a credit for this double diagonal. If I see a credit of 4.3, I will jump in without doing any analysis.

BTW if you look at each individual option, you will find a 7.xx debit using the mid. I really don't understand how TOS quotes me a credit of 4.3.

 

[RichardRimes]

Quote from optioncoach:

DIAGONAL POSITION UPDATE


Sold 135 AUG EW 1315 Calls @ Average Price of 1.83
Credit = ~ $12,402.50

Bought 150 SEP ES 1335 Calls @ 1.45
Debit = $10,875

INITIAL NET CREDIT = $1,527.50

Eventually added extra 15 AUG EW Calls @ 4.00 for additional credit of $3,000.

NEW NET CREDIT = $4,527.50


-----> ES has been in a wonderful sideways pattern around 1300 or so. If it can keep it up for a few mroe days, my EW 1315 calls can expire worthless and I can take some significant profits on the SEP ES 1335 calls (currently at 1.20 and with 150 contracts, a value of $9,000).

have to say Coach...very NICE call...a little un-coach like ( so close to the money!) but after much volatility the SPX has been acting like a pussy cat of late...this play should work out very nicely! (hope I didn't jinx it)

 

[cdowis]

Dumb question -- what is EW? Edwards Lifesciences??

 

[RichardRimes]

Quote from cdowis:

Dumb question -- what is EW? Edwards Lifesciences??

EOM futures option...So his play is a short term diagonal using regular exp with EOM exp. also BOX does penney's

 

[Sailing]

Try looking at this combination @ Oct expiration and notice the difference

SPX 1350/1375 Oct/Dec Call
SPX 1250/1225 Oct/Dec Put

Quote from yip1997:

I am looking at this double diagonal using TOS, but the risk profile shows that there is no profit range at Sep 15.

SPX 1325/1375 Oct/Dec Call
SPX 1275/1225 Oct/Dec Put

The debit is 7.2.

Attached is the risk profile from TOS. Did I not use it properly? Is it possible for a double diagonal having no profit zone if IV doesn't change?

 

[yip1997]

Quote from Sailing:

Try looking at this combination @ Oct expiration and notice the difference

SPX 1350/1375 Oct/Dec Call
SPX 1250/1225 Oct/Dec Put

Murray,

I like your diagonal. This requires only half of the margin.

 

[Sailing]

Then consider an Oct/Sept 1300/1300 put diagonal with half the contracts as the long...

see if you like that even better.

M~

Quote from yip1997:

Murray,

I like your diagonal. This requires only half of the margin.

 

[yip1997]

Quote from Sailing:

Then consider an Oct/Sept 1300/1300 put diagonal with half the contracts as the long...

see if you like that even better.

M~

Murray,

Too bad that I have used up most of my margin in my RUT diagonals and verticals. I only have small amount of buying power for emergency adjustment and don't have enough margin to open these positions.

My broker charged me margin on both legs for diagonals. I called them and they said it is the NASD regulation.

I guess I have no choice but move to haircut. Have you decided how you like to set up your trading entity?

Percy

 

[Remarg]

Sorry guys,

When should be the TOS new release with the volatility tools?

Regards

 

[Sailing]

We're in the process.... if tough when there's 50 different opinions in a large group.

Large group dynamics are interesting.... especially when it comes to money.

M~

Quote from yip1997:

Murray,

Too bad that I have used up most of my margin in my RUT diagonals and verticals. I only have small amount of buying power for emergency adjustment and don't have enough margin to open these positions.

My broker charged me margin on both legs for diagonals. I called them and they said it is the NASD regulation.

I guess I have no choice but move to haircut. Have you decided how you like to set up your trading entity?

Percy