SPX Credit Spread Trader

Quote from skdoyle1:

Hey there,



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
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I am working currently on them, actually ratio diagonals and it looks promising, however I need some violent movement to see how my adjustments will keep up with the madness :)
 
Quote from skdoyle1:



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
More...

I am going to start paper trading a double diagonal later this week. We will have to compare notes and see how it goes. What strikes are you placing positions at?

ryan
 
Quote from optioncoach:

Which results? American Idol? My date with JA?
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You forgot Big Brother to make this intelectual challenge completed ;)

But to make this party over - are there any other concerns regarding conversion of OTM verticals into Iron Flies or Boxes besides price ?

I usually stay with BOX, as index going deeply further in one direction increases probability of reversal, but it has its price.
 
Only concern is if I adjust my OTM vertical into a VLY or BOX and the index reverses and moves back away from my short strikes, thus making the adjustment unnecessary in hindsight and I have to take a limited loss I wuld not have needed to take.

However since I cannot really control that so I dropped that concern a long time ago because the one time I hesitate in making an adjustment waiting for a reversal is when the market will really tank and cost me a chuck of cheddar. I like the FLY conversion when I really feel the market is going to keep moving against me. Then I have a rediced risk lottery ticket for large potential returns if the market moves towards the body of the converted FLY and hovers there. If not, then I significantly reduced my risk anyway and move on to the next month.

Quote from ChrisM:

You forgot Big Brother to make this intelectual challenge completed ;)

But to make this party over - are there any other concerns regarding conversion of OTM verticals into Iron Flies or Boxes besides price ?

I usually stay with BOX, as index going deeply further in one direction increases probability of reversal, but it has its price.
More...
 
Quote from optioncoach:

Then I have a rediced risk lottery ticket for large potential returns if the market moves towards the body of the converted FLY and hovers there. If not, then I significantly reduced my risk anyway and move on to the next month.
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Frankly,

I like iit in my private account, but for OPM I`d rather stay with BOX - no excitment, but some average.

The worst is when market plays around the body for a while and then flies away right before expiration. I know, you may get out, but this is like daytrading sometimes.
 
Coach,

Is there any place I can go to review a spread price at a specific time.

This morning I placed 3 put spreads orders; The S&P lost 7 points and I was due for a fill and never got filled. I called OX 10 minutes go and they told me that the system was down at SEBEL Ex and they were going to review the trades to see If in fact I was due and they will fill my orders if necessary.

Do you know any site I can review it myself?

Thanks
 
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