SPX Credit Spread Trader

[gatorplease]

Quote from Cache Landing:

One time I went on a honeymoon to Costa Rica a couple weeks before expiration thinking that I was easy far enough OTM that I wouldn't have to worry. I got back a few days before SET and my FOTM credit verticals were now ATM verticals. ....

That'll teach you to get married!

 

[RichardRimes]

Quote from gatorplease:

I'm going to be out of the country for a week at the end of April. I'm curious on everyone's thoughts on placing a credit spread or condor for April, knowing I may have little access to the internet for trading and certainly no real time access.

My personal plan is to clear the board. I have a couple of calendar diagonals, that I will leave running. But I'm going to cash in the mean time. Want to leave and return without having to worry. I'd feel really dumb leaving and having a major market move against me. But I'd like to hear others thoughts.

(PS Say a prayer for us. We're going on a medical mission in El Salvador. Setting up a dental clinic in an orphanage down there.)

end of April or end of March? The market will be here when you get back...believe me you will not miss out.. Clear the board so you can focus your attention on your mission, once you get there you will forget very quickly everything that is going on here anyway. Best wishes and good thoughts...

 

[RichardRimes]

Quote from gatorplease:

Any thoughts on a quickie condor-10 pts 1240/1250-1300/1310 brings $2. Another way to play this for less maintenance.

for april? no way..April could be very volatile!

 

[gatorplease]

Quote from DonnaV:

for april? no way..April could be very volatile! [/QUOTE

No, quickie for March exp

 

[RichardRimes]

Quote from gatorplease:

Quote from DonnaV:

for april? no way..April could be very volatile! [/QUOTE

No, quickie for March exp

If you can get two bucks might not be bad...as long as you can monitor it...you've gone for the gusto before

 

[RichardRimes]

Quote from Cache Landing:

One time I went on a honeymoon to Costa Rica a couple weeks before expiration thinking that I was easy far enough OTM that I wouldn't have to worry. I got back a few days before SET and my FOTM credit verticals were now ATM verticals. I've told myself since that if I'll not have access for more than a day or so, cash is the best position to have. But that doesn't necessarily mean that you couldn't put on a position and try for some theta decay and favorable price action until you leave.

"One time I went on A honeymoon"....how many honeymoon's have you been on?????

 

[gatorplease]

Quote from DonnaV:

"One time I went on A honeymoon"....how many honeymoon's have you been on?????

one too many!?!?!:eek: :eek:

 

[burrben]

You could do two things:
1 ) If you have OX, place a contingent order to exit the spread position at a defined point on the spx, AT THE MARKET. (since you don't know what the option prices will be)

2) If you have the best broker, TOS. Send an email to tradedesk@thinkorswim.com along with very detailed instructions on how you want the trade handeled, and they will watch the trade for you. I did this when I just went away to mexico, and Scott S was happy to have the trade desk monitor it.

Just a note, TOS does not allow contingent orders with the trigger being the SPX since it's not electroniclly traded, you need to use the s&p future to trigger on. Also, the trade desk will try to get you filled at the MID-.05 or .10 instead of being filled as a natural on a contingent order.

(they really need to have a pseudo programming language for complex orders ex (limit price = MARK - .10)

sd

Quote from gatorplease:

I'm going to be out of the country for a week at the end of April. I'm curious on everyone's thoughts on placing a credit spread or condor for April, knowing I may have little access to the internet for trading and certainly no real time access.

My personal plan is to clear the board. I have a couple of calendar diagonals, that I will leave running. But I'm going to cash in the mean time. Want to leave and return without having to worry. I'd feel really dumb leaving and having a major market move against me. But I'd like to hear others thoughts.

(PS Say a prayer for us. We're going on a medical mission in El Salvador. Setting up a dental clinic in an orphanage down there.)

 

[burrben]

Hey there,

I'd just like to reccommend a video series I just watched that is very applicable to the type of trading we are doing. Credit Spread, Iron C's, Calendar's and the reccommended type of trade the double diagonal are gone over in good details. Just a FYI


Dan Sheridan's Market Maker's Guide to Income Generation 1-4
http://www.mycboe.com/LearnCenter/webcast/archive.aspx

Dan might be annoying to some people, but there are gems of information

PS: Can anyone give feed back on placing a double diagonal vs an Iron C in practice? I'm trading them on paper now and I like what I see, but I'll looking for the pitfalls

 

[gatorplease]

Quote from skdoyle1:

You could do two things:
1 ) If you have OX,...

2) If you have the best broker, TOS. Send an email to tradedesk@thinkorswim.com along with very detailed instructions on how you want the trade handeled, and they will watch the trade for you. I did this when I just went away to mexico, and Scott S was happy to have the trade desk monitor it.


sd

That's awesome! I didn't realize TOS would do that. I may leave some instructs for the few positions I'm leaving open. Awesome info... glad I asked the question.

Thanks.