SPX Credit Spread Trader

rdemyan · Apr 21, 2006

I had a feeling that wouldn't get past you. LOL

However, I'm partial to a more, shall we say, bodacious bod!

Quote from optioncoach:

P.S. how is this woman not anyone's type [/B]

Shams78 · Apr 21, 2006

I agree that if your far enough OTM you will seldom have to adjust, and I looked into placing OTM trades at around 45 to 50 days to expiration with a 85% probability of success but with low volatility the credits aren't very good (risk/reward) not great, plus it ties up capital in margin for 45 days. Do you have a required amount of credit that you will accept with a 10 point spread? I like to see at least .50 for a 10pt spread.

Cache Landing · Apr 21, 2006

Quote from rdemyan:

I had a feeling that wouldn't get past you. LOL

However, I'm partial to a more, shall we say, bodacious bod!

I like the more curvy Selma Hyek type too, but you have to admit that JA is crazy hot!!!

Cache Landing · Apr 21, 2006

Quote from Shams78:

I agree that if your far enough OTM you will seldom have to adjust, and I looked into placing OTM trades at around 45 to 50 days to expiration with a 85% probability of success but with low volatility the credits aren't very good (risk/reward) not great, plus it ties up capital in margin for 45 days. Do you have a required amount of credit that you will accept with a 10 point spread? I like to see at least .50 for a 10pt spread.

I like to see >1.00 for a 10-point spread, but I am one of the more aggressive traders here.

Cache Landing · Apr 21, 2006

Really it has less to do with the credit you take in, and more to do with your personal strategy.

Shams78 · Apr 21, 2006

rdemyan

The lot size I mentioned was hypothetical just stating that I'd increase my position to by half it's original size. If I had a lot size of 2 I'd increase to 3 if it hit my adjustment limit.

rdemyan · Apr 21, 2006

I typically look for around $0.50 myself.

Quote from Cache Landing:

I like to see >1.00 for a 10-point spread, but I am one of the more aggressive traders here.

Cache Landing · Apr 21, 2006

Quote from rdemyan:

I typically look for around $0.50 myself.

Yeah, I think Rallymode is the only one here that positions himself closer to the underlying than I do.

rdemyan · Apr 21, 2006

Cache:

That's just for a spread, right, and not the IC? An IC would be > 2.00.

Quote from Cache Landing:

I like to see >1.00 for a 10-point spread, but I am one of the more aggressive traders here.

Shams78 · Apr 21, 2006

I've been trying to find a way to backtest this strategy, but can't seem to find anyone that has historical data on options going back more than 5 years. Anyone ever backtest this strategy.