SPX Credit Spread Trader

Bump :D

NEW MAY PUT SPREADS ADD/VIX HEDGE:


MAY POSITIONS

-400 SPX MAY 1215/1225 Put Spreads @ $0.35

Credit = $14,000
Risk = $386,000
Return = 3.62%

Long 100 VIX MAY 20.00 Calls @ $0.20
Cost = $2,000


APRIL POSITIONS

SPX CALL DIAGONAL SPREAD (OPEN):

- 8 SPX APR 1340 Calls @ $4.70
+ 10 SPX MAY 1375 Calls @ $3.10

Net Credit = $660

Unrealized profit of about $1,000 for now but gonna let it run and make more off of it if I can.



SPX BULL PUT SPREAD (CLOSED):

- 350 SPX APR 1225/1235 Put Spreads @ $0.35

Net Credit = $12,250

Closed for net credit of $0.15 or $5,250



PUT SPREAD PARTIAL HEDGE (OPEN- and the reaons we are bullish lol):

+ 100 SPY APR 126/125 Put Spreads @ $0.10

Net Debit = $1,000


Search Word = COCONUT
 
Quote from optioncoach:


APRIL POSITIONS

SPX CALL DIAGONAL SPREAD (OPEN):

- 8 SPX APR 1340 Calls @ $4.70
+ 10 SPX MAY 1375 Calls @ $3.10

Net Credit = $660

Unrealized profit of about $1,000 for now but gonna let it run and make more off of it if I can.

SPX BULL PUT SPREAD (CLOSED):

- 350 SPX APR 1225/1235 Put Spreads @ $0.35

Net Credit = $12,250

Closed for net credit of $0.15 or $5,250

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Coach, could refresh our memory: what was the margin ?
 
April put spread position is closed and APRIL/MAY diagonal call spread has $28,000 margin. MAY put spread is $386,000.

Quote from ChrisM:

Coach, could refresh our memory: what was the margin ?
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Quote from rdemyan:


This brings up another question. I'm not sure I understand what market makers do. I guess I simplistically thought that they were supposed to "make a market", i.e. facilitate trading between buyers and sellers. I also thought that they would at times buy contracts when there are more sellers than buyers (of course at a discount but still buying).

Are they required to do anything to assist in "making a market" or is this just lip service for taking hefty premiums.
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Well, thats a MM in the traditional sense which mostly covers individual stock market making and options. But when we are speaking of VIX options market making, i think traditional pricing goes out the window in my opinion.
 
Decided to jump in the water with Coach:

1) Got filled on the following:

SPX 1215/1225 bull put at $0.45

2) Then got filled later for half as many contracts as earlier:

SPX 1215/1225 bull put at $0.50

3) Bought the May 20 VIX in a quantity of 1/3 of my total SPX bull put contracts for $0.20.


On that second SPX fill, I was only asking for $0.45 (which was a nickel below the mid when the trade was placed) and got an extra nicklel :)

BTW: I've noticed recently that I'm having a lot more success with ToS fills when I cancel and replace orders. One of the ToS guys gave me that tip. So if you enter an order and it sits there for awhile and you feel that you really should be filled, try canceling and replacing the order first before you give up a nickel or dime.
 
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