SPX Credit Spread Trader

Todays bearish action has turned the SPX into one ugly looking chart near term. As i have said before, i think even though it seems the market is using every chance to rally, the path of least resistance would probably be down.

I think the next 2 days are crucial in figuring out the direction we are headed as it seems that technically we are at a major pivot point.

I would be looking at the 1280-1285 area over the next week or 2 for support but given that the SPX hasnt had a deeper correction in 5 months now, i think the 200 MA is a real possibility if we break the support line. If you look at the longer term SPX chart you will notice that every 4-5 months the SPX breaks the short term channel. There certainly is alot that can happen over the next few weeks that can take us lower.

I'd be cautious on getting into any put spreads unless they are way OTM. On a more personal note, i'd probably avoid getting into a may put position unless we hit that 200 MA since i dont go FOTM with my trades.

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Is anyone having success these days getting filled at TOS? It seems their software gives a mid, say $0.80, but when they call down to the floor to get a market, it's much less, say $0.55 :confused:
 
Quote from andysmith:

Is anyone having success these days getting filled at TOS? It seems their software gives a mid, say $0.80, but when they call down to the floor to get a market, it's much less, say $0.55 :confused:
More...

I've noticed some discrepencies as well. I usually see them when the bid is less than zero but I think I have seen them at other times as well. Probably a quirk in their software.

ryan
 
Quote from ryank:

I've noticed some discrepencies as well. I usually see them when the bid is less than zero but I think I have seen them at other times as well. Probably a quirk in their software.

ryan
More...

For example

OX is showing a quote of .25x.75 for SPX April 1235/1245 put spread.

TOS software is showing .25 as the mid with a quote of -.25x.75

ryan
 
Quote from ryank:

For example

OX is showing a quote of .25x.75 for SPX April 1235/1245 put spread.

TOS software is showing .25 as the mid with a quote of -.25x.75

ryan
More...

Yeah, I haven't been too fond of OX's not indicating the negative number somehow in my Watchlist. Only when I attempt to trade the spread do I see the negative Bid number.

:mad:
 
I was told by the powers that be at ToS that the bid ask spread and mid-point are based off of the average bid asks from the floor with respect to SPX. The best b/a is actually much tighter and usually lower than what you see. Frustrating but it is not so much a ToS thing as it is a quote thing and the way the composite quotes are quoted for SPX options.

When I would call in to the floor through ToS, the b/a spread was always much tighter ($0.30) then the composite b/a spread of all market makers and the mid-point was sometimes lower.

Quote from andysmith:

Is anyone having success these days getting filled at TOS? It seems their software gives a mid, say $0.80, but when they call down to the floor to get a market, it's much less, say $0.55 :confused:
More...
 
Hi Coach, pls help.....

Not really understanding what you're describing about the bid ask problem in the few posts above. In previous posts months ago you've been describing your method of getting filled with OX spreads which I understood really well.

eg if the bid ask shown on OX is 0.25/0.85

I place my spread price at 0.55 (mid point) and wait for a fill.

If not I would shave a nickle or a dime towards the bid after a period of time has passed. Is this still how I can do it? Just a little confused with the -bidx discussed in the last few posts.

The reason Im asking is because I've only read up to page 90 and we're up to page 900 :p . So things may have changed alot since pg 90. Im behind by a few months but plan to be up to date in a month :) Ready to jump in soon as I've just transferred funds to OX from Aust. Looking forward to it but plan to be very conservative.

Thanks in advance for your help.
 
Coach:

I posted earlier that I placed my first hedge in April. I purchased a 133 SPY Call to hedge my April SPX bear calls.

So, I'm thinking about exit strategies for this SPY hedge.

1) Let it expire, which is the strategy I planned to use when the hedge trade was first openend.
2) Sell the hedge to get what I can when I'm fairly certain that my short SPX strike will not be breached.
3) Only sell the SPY hedge if I close my SPX bear calls first.

I don't remember any posts (in this 800+ page thread) where you discuss your exit strategies for your hedges (but you probably did somewhere).

Thanks.
 
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