SPX Credit Spread Trader

[rallymode]

Quote from andysmith:

It's slow moving...

Can you point me to a faster moving instrument for the same amount of risk? I'd be happy to find out what that is.

 

[andysmith]

what was the net delta and gamma of your spread when you put it on?

Quote from rallymode:

Can you point me to a faster moving instrument for the same amount of risk? I'd be happy to find out what that is.

 

[rallymode]

Quote from andysmith:

what was the net delta and gamma of your spread when you put it on?

i dont remember, but you can use current prices for your example.

 

[CashCache]

For what it's worth, this is exactly why I only trade a maximum of 40% of my account using this strategy. If I need to defend a position, I want to be able to throw as much cash into my rolled position as is needed to stay positive.

If a .60 credit position goes against me and I end up shutting it down for a net debit of 1.80, it would take me 4 times the number of contracts on the roll-out to keep my initial credit (assuming I get the same credit amount on the roll).

Quote from ryank:

After the post by Prevail this morning I played around with the models in TOS a little more (boy am I not getting any work done this morning). I think you may be onto something. The key, as it is with any strategy, is the management of the position. Using additional cash to make an adjustment instead of buying a hedge seems to work well, as long as you have enough cash to make the adjustments. If you have to make 2 or more adjustments you better have a really healthy reserve available to do it with or you could be sunk for a good chunk.

I will have to try this out on a small scale with June positions, I haven't found any May positions that would work right now. You put on your May call position right before April expiration right? Any May put positions yet?

ryan

 

[rallymode]

Quote from CashCache:

For what it's worth, this is exactly why I only trade a maximum of 40% of my account using this strategy.

When i hear things like these i hope you guys are using this strategy with aggressive money or MAD MONEY like cramer likes to say

 

[CashCache]

It's all Mad Money!

But to clarify, things like what? The fact that I use 40 percent of my account, or that I am willing to adjust a position and stay positive?

Quote from rallymode:

When i hear things like these i hope you guys are using this strategy with aggressive money or MAD MONEY like cramer likes to say

 

[ryank]

Quote from ryank:

I've been searching for it but haven't found it. Can you point me to it? tia

ryan

Never mind, I finally found it after much digging.

ryan

 

[rallymode]

Quote from ryank:

Never mind, I finally found it after much digging.

ryan

i sent you a pm in your inbox 10 mins ago

 

[rallymode]

Quote from CashCache:



But to clarify, things like what? The fact that I use 40 percent of my account,

Yes, the fact that after all adjustments are taken into consideration, your max risk is 40% of port. Pretty huge chunk for any money thats not mad money.

 

[Prevail]

good job, this is the key to finding expectancy which will allow you to move closer to systemization.

Quote from ryank:

After the post by Prevail this morning I played around with the models in TOS a little more (boy am I not getting any work done this morning). I think you may be onto something. The key, as it is with any strategy, is the management of the position. Using additional cash to make an adjustment instead of buying a hedge seems to work well, as long as you have enough cash to make the adjustments. If you have to make 2 or more adjustments you better have a really healthy reserve available to do it with or you could be sunk for a good chunk.

I will have to try this out on a small scale with June positions, I haven't found any May positions that would work right now. You put on your May call position right before April expiration right? Any May put positions yet?

ryan