SPX Credit Spread Trader

I was trying the below trades since monday but i never got a fill.I know some people who even got better fills. My broker is IB and this is the answer i got.

We put on the following trades on monday and were never filled.
SPX 1350/1360 call credit spread(0.50cents).
RUT 790/800 call Credit spread (0.65cents).

was there any problem with the TWS?.



IB:If the market is bid greater than or equal to your sell limit order for a credit spread please feel free to contact IB at that time and we can inquire with the trading floor as to the status of the order. Please bear in mind spread orders are not held orders which means the spread prices and trades are not held to the time and tape.
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Are spreads held orders in OX?. I thought that was the whole point of electronic trading. so that we dont have to watch the market.
 
Coach:

Looks like we're back up near resistance for the SPX. I'm wondering if this might not be a bad time to place a May bear call spread. Advantages are additional time premium and being able to go even more FOTM, UNDER THE ASSUMPTION, that we remain in a trading range. However, if this is a breakout, it would probably not be a good time.

Current mid on a May 1380/1395 is $0.60

What do you think?
 
I think today will be a reversal day of the recent rally. Last two positive days including todays start were based on thin air in my opinion.

On another note, we have spent too much time between 1300 and 1310. As that happens, the 1310 resistance weakens.

Everyone and their mother seems to think we are headed lower, therefore contrarians would think that a brief breach to the upside is quite possible to shake out some shorts. To be honest, at this point i am more worried about my 1250 short then my 1330 with 3.5 weeks left.:D



Off topic->In my aggressive portfolio, i bought AAPL APR 60/62.5/65 FLYs for $.35. Love the R/R on that trade. I have a weakness for FLYS with 7/1 reward/risk ratios. It's almost as bad as my weakness for hot brunettes :D
 
Hard to read MAY in one sense since we have another FED meeting by then and April earnings season on S&P. I would say get as close to 1400 as you can get with a decent credit but we are more than 50 days away so for me I will wait another week before looking into MAY.

The resistance seems to be forming around that 1310 mark or so with about 4 touches the past 2 weeks. We have stayed up regardless of whatever negative news hits us. Does not mean we will definitely keep moving higher, but it lets you know the energy there and when any good news really comes out, then we can push over 1310. I think go as far OTM as you can get! I am a little cautious about calls although 1310 holding up again shows we still do not have all the steam in place yet.

Bottom line... what the @#$% do I know lol..
 
Yes, the unique beauty of the diagonals is that close ti expiration moves to the short strike are not as frighetening as when you have a credit spread :)

Quote from rallymode:

What i like about diagonals is that they really reward me where my credit spreads throw me for a spin. That is when the market is near my short strike right before expiration.
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Sorry if I'm being a pest, just wondering if anyone is using ChartBender for trading? I'm can post up some of their charts here if anyone is interested since I took advantage of coachs 2months for 1 deal. Anyone use them or have interest?

Quote from skdoyle1:

...

For those of you who have used their software, or watched the presentation, what do you think? Is it worth it to give it a try? Could this help us in finding the right day to open our spreads do to IV?

....
sd
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Quote from Sailing:

Rally,

I actually placed a Donna positions when I enterd the Call Side.

This means I legged into the put on the downside. But in general, as you pointed out, the Put side is difficult if not impossible to put on for EVEN.

The call side is tricky. As you pointed out, getting in for even or for a small credit and the appropriate distance is a matter of the current volatility skew. I have found that the OEX has been a better fill risk/reward than the SPX.... but that can change.

My goal is to ratio the upside for even or better, with littleo to know risk if the market takes off. This can be accomplished.

For example: Recently I bought 10 May 625c and sold 4 Apr 605c and then sold 6 addition April 625c. What is nice here... is the margin requirement is only for the 4 short positions sold at 605.

The positions risk graphs looks like an unbrella... which can be adjusted.

As coach pointed out.... in his positon, as the market moves up... to the short positions.... this is maximum profit... and you have break even potential beyond the short. I would certainly attempt to hold the positon to as close to expiraton as possible.... the preimium really bleeds out the last week... while the long has potential to increase in VEGA without the shorts having much effect.

In summary... the Diagonal... is a VEGA play... yet, gives you profit potential through large range.... and 'black swan' protection.

Murray
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What you actually created is 6 calendar call spread preads for April may at 625 call.
and :

4 diagonal call spread for april may selling the 605 April call and buying the 625 call.

Labib Imtanes
 
Correct


But when I sold the April 625c, I'm now back into a ratio diagonal....

I really like the fact that the diagonal trade has many facets... adjustments... opportunities.



Quote from labib52:

What you actually created is 6 calendar call spread preads for April may at 625 call.
and :

4 diagonal call spread for april may selling the 605 April call and buying the 625 call.

Labib Imtanes
More...
 
Keep pushing cause I am interested as well. I just have not had time lately to go back and play around with it although I get their daily IV reports which are now updated throughout the day (like 6 or 7 reports a day). I also want to see his live seminars, another one this thursday on CALENDAR SPREADS (DONNA ALERT).



Quote from skdoyle1:

Sorry if I'm being a pest, just wondering if anyone is using ChartBender for trading? I'm can post up some of their charts here if anyone is interested since I took advantage of coachs 2months for 1 deal. Anyone use them or have interest?
More...
 
Quote from optioncoach:

Keep pushing cause I am interested as well. I just have not had time lately to go back and play around with it although I get their daily IV reports which are now updated throughout the day (like 6 or 7 reports a day). I also want to see his live seminars, another one this thursday on CALENDAR SPREADS (DONNA ALERT).
More...

Thanks for the alert! What time tonight? I'm afraid I'll miss it as I'll probably be driving home. Do they archive it?
 
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