SPX Credit Spread Trader

Erm, thanks for kind words: Volatilitypimp, Donna and Rdemyan (research is all I'm good for!)

Visits to ET are sporadic and fleeting.

RE: VIX Options

Apologies if this has been covered already or this horse was considered dead as I cannot pretend to keep up to speed with the frenetic pace of this thread any longer.

I'm sure all those trading this instrument took the time to familiarize themselves with the specification of the contract before jumping in, but the following may have slipped by unnoticed:

"VIX option prices should reflect the forward value of VIX, which is typically not as volatile as spot VIX. For instance, if spot VIX experienced a big up move, call option prices might not increase as much as one would expect. Depending on the value of forward VIX, call prices might not rise at all, or could even fall!" (my emphasis)

Full FAQ and spec here: http://www.cboe.com/micro/vix/vixoptionsfaq.aspx

Have a nice break all.

MoMoney.


Quote from rallymode:

Even if it was a bad tick, the calls have barely moved even the ITM ones and the vix is about a point and a half higher than when coach first posted about it. I still think that normal option pricing won't apply when the next black swan happens.
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It is the root of our VIX debate :) Welcome back!

Quote from momoneythansens:

Erm, thanks for kind words: Volatilitypimp, Donna and Rdemyan (research is all I'm good for!)

Visits to ET are sporadic and fleeting.

RE: VIX Options

Apologies if this has been covered already or this horse was considered dead as I cannot pretend to keep up to speed with the frenetic pace of this thread any longer.

I'm sure all those trading this instrument took the time to familiarize themselves with the specification of the contract before jumping in, but the following may have slipped by unnoticed:

"VIX option prices should reflect the forward value of VIX, which is typically not as volatile as spot VIX. For instance, if spot VIX experienced a big up move, call option prices might not increase as much as one would expect. Depending on the value of forward VIX, call prices might not rise at all, or could even fall!" (my emphasis)

Full FAQ and spec here: http://www.cboe.com/micro/vix/vixoptionsfaq.aspx

Have a nice break all.

MoMoney.
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Just give me the name of the guy who filled your order at ToS or OX and I will deal with him :mad:

Quote from ryank:

I was able to grab some May 1210/1220 puts today for .60, I just had to rub it in a little Coach. :D

ryan
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Hello everyone:

I am new to your site, but have enjoyed reading the posts. Is anyone else bearish? I am and my resistance levels on SPX are 1295/1310/1325.

My current trade is SPX 1340/1355 for 1.45 credit done on 4/11.

If anyone knows how to get email updates or alerts anytime a post is made here, I would appreciate it.
 
Hello everyone:

I am new to your site, but have enjoyed reading the posts. Is anyone else bearish? I am and my resistance levels on SPX are 1295/1310/1325.

My current trade is SPX 1340/1355 for 1.45 credit done on 4/11.

If anyone knows how to get email updates or alerts anytime a post is made here, I would appreciate it.
 
Quote from wonton:

Hello everyone:

I am new to your site, but have enjoyed reading the posts. Is anyone else bearish? I am and my resistance levels on SPX are 1295/1310/1325.

My current trade is SPX 1340/1355 for 1.45 credit done on 4/11.

If anyone knows how to get email updates or alerts anytime a post is made here, I would appreciate it.
More...


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Does anybody trade on Fibonacci? I use it and it works well.

I believe SPX and OEX trade in accord with its Fibonacci numbers.

Did you look at SPX(1246,1295) Fibonacci 1.382=1313.718
OEX(569,589) Fibonacci 1.382=596.64.

Guess what were the last swing highs on SPX and OEX: 1314.07, 596.28 respectively. How much precise do you want it to be.

If you place your Short strike according to Fibonacci numbers, you don't have to worry about hedging most of the time.

It works for me all the time anyway. That's why most of my money is made on OEX Spreads.

I know it works on OEX and SPX . I trade RUT also ;not on Fibonacci but on other statistical data.
 
My only problem with Fibonacci is that it works quite well after the fact. Since where you decide is the low or highs to work off of is quite subjective between 2 different people, I always a getting Support and Resistance levels that already were touched looking back but can never project them accurately going forward. Many times a top I use for a retracement is just a pause and the market keeps going higher and thus you have to readjust the lines.
 
Quote from piccon:

Does anybody trade on Fibonacci? I use it and it works well.
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I think any idea may be used as long as homework is well done, however there are some great theories but extremely hard to use, due to subjectivity of readings. In my opinion Fibonacci is one of them, besides Elliott of course.

At least I don`t know many traders using these concepts and being successful in long term run.

If you are one of exceptions to this rule, my respect for your skills is even bigger.
 
OC , did you ever looked at this strategy on SPX :
1. Short 30d ATM straddle
2. Long 60d wings (2% away from ATM)
The results looks very good.
I do it with stocks ( under certain conditions) and I wonder if you ever tryed the same with Index.
 
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