SPX Credit Spread Trader

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
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Fire your broker and go to optionxpress or TOS. They only charge for one leg.
 
Quote from RichardRimes:

also BOX does penney's
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"Actually the Box, the ISE and the CBOE can all price improve but this is only for single options and not for spreads. If you direct your order to an
exchange it is no longer eligible for price improvement. If you are
referring to spreads the reason that we route a lot of your orders to the ISE is that they are totally electronic thus providing for faster cancels.

I hope this helps,

Scott Sheridan"

An e-mail from TOS
 
Quote from cdowis:

Fire your broker and go to optionxpress or TOS. They only charge for one leg.
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I also found that my broker (ameritrade) has greeks completely different from TOS. Ameritrade shows a delta of 50 whereas the same portfolio using TOS shows a delta around 7. How come it has this big difference? I don't really know which one to trust.
 
Ameritrade is a stock broker for the average investor.

ToS was founded by former option market makers and floor traders who worked on designing a great trading platform as well as one with many option analytical tools...

I think it is pretty easy to decide who to trust... :D

Quote from yip1997:

I also found that my broker (ameritrade) has greeks completely different from TOS. Ameritrade shows a delta of 50 whereas the same portfolio using TOS shows a delta around 7. How come it has this big difference? I don't really know which one to trust.
More...
 
Quote from yip1997:

I also found that my broker (ameritrade) has greeks completely different from TOS. Ameritrade shows a delta of 50 whereas the same portfolio using TOS shows a delta around 7. How come it has this big difference? I don't really know which one to trust.
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It may be a matter of decimal places. A delta of 30 is shown in TOS as 300.00.

But you should be able to eyeball it. A delta of 50 is ATM while a delta of 7 is several strikes OTM.
 
Quote from optioncoach:

Ameritrade is a stock broker for the average investor.

ToS was founded by former option market makers and floor traders who worked on designing a great trading platform as well as one with many option analytical tools...

I think it is pretty easy to decide who to trust... :D
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I used ameritrade's greeks for delta neural hedging in the past. No wonder I didn't have home runs.:mad:
 
Quote from cdowis:

It may be a matter of decimal places. A delta of 30 is shown in TOS as 300.00.

But you should be able to eyeball it. A delta of 50 is ATM while a delta of 7 is several strikes OTM.
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Let me see if I understand it. For a portfolio with a delta of 50, what does it mean? Does it mean that the portfolio will change by $50 with a change of 1 point in the underlying? (My porfolio has over 10 legs with rut, so it is better to look at it in terms of dollar amount)
 
Not to beat a dead horse, but simply put - you cannot continue to use Ameritrade if you are serious about trading options .... perid. Hope you change your broker soon, you'll know what I am talking about once you do.


Quote from yip1997:

I used ameritrade's greeks for delta neural hedging in the past. No wonder I didn't have home runs.:mad:
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RR

Did you start speaking riskarb?:)

Best

~Ben


Quote from RichardRimes:

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