SPX Credit Spread Trader

[Pabst]

Quote from optioncoach:

Also, this position will not blow up my account but I appreciate the sentiment and concern.

Since you probally have a position that's around 10% of the size you stated I'm sure you won't "blow up".

That aside you're doing a severe diservice to your "followers" by even talking such shit. I don't EVER pipe into someone's journal and in fact I rarely even read THIS journal. However you should be aware that many newer traders read your thoughts and are vulnerable to making the trades you do. This particular trade is nothing less than reckless. Just my HO.

 

[tplast]

Quote from rallymode:

I highly doubt that on anything over 2 lots. On spread orders(given you can place them as spreads) it will never happen. Maybe on single legs once the market moves against you the bots will fill you instantly. Diagonals with ES/EW filled at mid? Dreaming.

Yes, as I said you have to leg in. You can place spread orders on GLOBEX but I've never received a fill even when a better price would be available trading the legs.

On individual legs, I have definetly been getting consistent fills at the middle for 10 and 20 contracts.

 

[ryank]

I may be a little behind on this one but I read that NASDAQ is going to start an options exchange next year:

http://www.nasdaq.com/newsroom/news/pr2006/ne_section06_106.stm

A move to pricing in pennies and the added competition of a big player like NASDAQ, could be good.

 

[cdowis]

Sold my SP sep/oct 1260/1240 put diag at 500.
profit 180.

 

[Cache Landing]

wow, look at the short covering in the housing sector:eek:

 

[cdowis]

Quote from Pabst:

That aside you're doing a severe diservice to your "followers" by even talking such shit. I don't EVER pipe into someone's journal and in fact I rarely even read THIS journal. However you should be aware that many newer traders read your thoughts and are vulnerable to making the trades you do. This particular trade is nothing less than reckless. Just my HO.

WARNING: New traders should not be reading this journal, nor should they consider any trades mentioned here.

This is educational only, and you could a lose substantial part of your account if you pay attention to anything that we may say here.

I hope you feel better, Pabst.

 

[El OchoCinco]

Pabst:

Your points are well taken except for the part where I do a disservice to anyone.

I have used so many breaths explaining how this thread is not for beginners and that this strategy is not a beginner strategy and actually requires a lot of market analysis skill and risk management skill. In fact i do not even cover this strategy in my book because it is too advanced in risk management and market analysis and portfolio management to convey properly in a book and I routinely tell people this is not covered in my book.

I am not sure what more I can do or am entitled to do since I cannot control everyone who decides to read in. This is a journal of MY trades and of those people who also are doing spreads on the indexes. This is NOT, nor has it ever purpoted to be an investment advisory service or a managed fund where readers follow my recommendations and I have made that point a few times.

Moreover, given the amount of regulars who jumped in to criticize the position, I doubt there are any sheep are blindly following my trades are keeping quiet when they disagree

 

[Sailing]

Would love too... kinda related to it.. a while back.. but I'll put together something more concrete here soon.... give me a week.

This 'Hedge Fund' start up is a real learning experience..... and is taking far more time than I expected. But, we're looking forward to the challenge and hopefully the rewards

M~

Quote from Heatheranderson:

And we then showed them how the position was covered.... without any further risk to the downside.
-----------------------------------------------------------------------------------

M
could you please elaborate the above.Powerpoint is a terrific idea,but until then... to satisfy our curiosity.

thanks

 

[Pabst]

I feel weird criticizing you because I'm fully aware of YOUR knowledge. I'm just worried about ANYONE who's a leveraged long in this area at this time. I believe with as much certainly as a gambler can have that this market is going to come off these swing highs with tremendous volatility. IMO we're days or weeks away from a 3-4% single day correction in SPX. I think this is a mini-2000 type trade. Spring break, summer rally, a horrendous fall. The catalysts? Several. A fed that's cautiously overshooting, the real potential for the GOP to lose the House and even another large scale attack by terrorists on U.S. soil. I'm not against risk. I love it. I EMBRACE it. But maybe look at the other side of the market...........

Quote from optioncoach:

Pabst:

Your points are well taken except for the part where I do a disservice to anyone.

I have used so many breaths explaining how this thread is not for beginners and that this strategy is not a beginner strategy and actually requires a lot of market analysis skill and risk management skill. In fact i do not even cover this strategy in my book because it is too advanced in risk management and market analysis and portfolio management to convey properly in a book and I routinely tell people this is not covered in my book.

I am not sure what more I can do or am entitled to do since I cannot control everyone who decides to read in. This is a journal of MY trades and of those people who also are doing spreads on the indexes. This is NOT, nor has it ever purpoted to be an investment advisory service or a managed fund where readers follow my recommendations and I have made that point a few times.

Moreover, given the amount of regulars who jumped in to criticize the position, I doubt there are any sheep are blindly following my trades are keeping quiet when they disagree

 

[Sailing]

FYI SPX Oct Credit Spread

We filled a 'retail margin' Oct 1385c/1375c credit spread position on Monday for .85

After these past two days... it's tempting to take the existing profit... 3.5% and look to reposition.

Does anyone else struggle with this notion of waiting around for five weeks for possibly the other 5% and endure the risk associated with it?

M~

Quote from optioncoach:

SPX bounce off of MA support (20 EMA and nice lunch bounce. Of course, what happens between 2 - 4 will see if this was just covering or some buying coming in.

Those of you looking at OCT puts, look at 1215 or 1220 if there is still any premium. 1240 is on the edge of pushing it given the July low of 1225 (hence the 1215/1220 area to start out with).

On the call side, 1340 at the lowest but 1360 would be preferred. However, right now the premiums are very small.