SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
HEY, I told you that in confidence... If I knew you were gonna blab it all over ET, I would not have told you! 
There is a definite learning curve. Most brokers use similar type's of trading softwear...TOS is unique and I struggled for awhile but as ryan or andy said I went thru the narration video's 2 or 3X and at that time didn't have the paper trade to practice on...honestly although I love it now I still feel there is sooooo much more to learn to get the most use from it. I forget to use spread hacker and still don't really know how to use it or the analyse page, I've forgotten where to pull up the expiration calendar etc etc etc..... but I wouldn't trade it for anything. The best I've ever seen.
and if you are used to OX then try the web version of TOS I think it is similar to OX
Quote from rdemyan:
Does anyone know of a good website for finding out when upcoming economic events, like GDP numbers, housing starts, fed numbers, etc., will occur. I need to start considering these types of announcements/events more when timing my entries.
Thanks.
I find Bloombergs info to be some of the best here.
http://www.bloomberg.com/markets/index.html?Intro=intro
Click on the tab on the left side that says Economic Calendar, they even have the consensus estimates listed, then they update shortly after the report.
Good Luck and Good Trading!
Kelly
Does anyone know of a good website for finding out when upcoming economic events, like GDP numbers, housing starts, fed numbers, etc., will occur. I need to start considering these types of announcements/events more when timing my entries.
Thanks.
I find Bloombergs info to be some of the best here.
http://www.bloomberg.com/markets/index.html?Intro=intro
Click on the tab on the left side that says Economic Calendar, they even have the consensus estimates listed, then they update shortly after the report.
Good Luck and Good Trading!
Kelly
Hello everyone:
I am currently short 20 OEX 600/605 for a credit of .75.
I put the trade on as an iron condor 550/555/600/605 for .90 right before the big runup and I already bought back the puts for .15.
600/605 seems too close for comfort to me with 22 days left. I'm hoping to get to Monday to take advantage of the weekend theta.
I am considering buying back the 20 600/605s and selling 40 605/610s for about even money, but unfortunately twice as much risk.
Any opinions/suggestions would be appreciated.
I am currently short 20 OEX 600/605 for a credit of .75.
I put the trade on as an iron condor 550/555/600/605 for .90 right before the big runup and I already bought back the puts for .15.
600/605 seems too close for comfort to me with 22 days left. I'm hoping to get to Monday to take advantage of the weekend theta.
I am considering buying back the 20 600/605s and selling 40 605/610s for about even money, but unfortunately twice as much risk.
Any opinions/suggestions would be appreciated.
Wonton,
Ha! You will get a diverse range of opinions and suggestions on how to handle this one. Take your pick.
No doubt you will get the usual lecturing about having an exit strategy before you put the position on. I'm sure it is now apparent why that is best practice if it wasn't before. Live and learn!
No doubt you will also be warned of the dangers of applying martingale strategies to rolling out - so I'll leave that topic for those with that particular bee in their bonnet
I suspect you will have a reprieve today in the underlying so this may all be academic.
If you had no position, would you sell the 605/610 bear call vertical now? If the answer is no, why not and why would you take on that position just because of your existing position?
If you're a swing trader as opposed to a market-neutral trader then selling the 605/610 bear call in expectation of a reversal right now might be what some people would actually do. Given you initiated an IC I suspect you are market-neutral though.
I personally prefer to just close the spread and be done with it once it reaches a certain threshold. The threshold I would use is based on the mark to market of the spread. Other people use a fixed number of handles away to trigger an adjustment but using the mark to market factors in the volatility and time to expiration too.
Rolling up or out (to later month) is just locking in your loss. The loss becomes fully realized.
In addition, you end up with a new position that in all probabilities you wouldn't in your right mind have taken on under different circumstances.
This is just my take on it - I'm aware other people have a different philosophy on this matter. It is also influenced by how large your position is relative to your portfolio and whether you are relying on this strategy as your main income generation.
When you initiated the IC, you did so knowing the exact risk/reward of the position. This month, perhaps your number has come up and your money at risk is now being collected.
If the potential loss is too much to stomach then I suggest the position size and risk/reward is adjusted the next time around
Good luck! I think you'll be OK.
MoMoney.
Ha! You will get a diverse range of opinions and suggestions on how to handle this one. Take your pick.
No doubt you will get the usual lecturing about having an exit strategy before you put the position on. I'm sure it is now apparent why that is best practice if it wasn't before. Live and learn!
No doubt you will also be warned of the dangers of applying martingale strategies to rolling out - so I'll leave that topic for those with that particular bee in their bonnet
I suspect you will have a reprieve today in the underlying so this may all be academic.
If you had no position, would you sell the 605/610 bear call vertical now? If the answer is no, why not and why would you take on that position just because of your existing position?
If you're a swing trader as opposed to a market-neutral trader then selling the 605/610 bear call in expectation of a reversal right now might be what some people would actually do. Given you initiated an IC I suspect you are market-neutral though.
I personally prefer to just close the spread and be done with it once it reaches a certain threshold. The threshold I would use is based on the mark to market of the spread. Other people use a fixed number of handles away to trigger an adjustment but using the mark to market factors in the volatility and time to expiration too.
Rolling up or out (to later month) is just locking in your loss. The loss becomes fully realized.
In addition, you end up with a new position that in all probabilities you wouldn't in your right mind have taken on under different circumstances.
This is just my take on it - I'm aware other people have a different philosophy on this matter. It is also influenced by how large your position is relative to your portfolio and whether you are relying on this strategy as your main income generation.
When you initiated the IC, you did so knowing the exact risk/reward of the position. This month, perhaps your number has come up and your money at risk is now being collected.
If the potential loss is too much to stomach then I suggest the position size and risk/reward is adjusted the next time around
Good luck! I think you'll be OK.
MoMoney.
Sorry, this might be a little off topic.
This year (2005) I received a 1099-B from Ameritrade with entries in lines 8-11 which is headed by "Regulated Futures Contracts". Specifically I have an entry for Net Profit (Loss) on Regulated Futures Contracts. I did not receive one from OX where I do most of my SPX spread trading and I don't recall getting one in the past (but I haven't checked). I just kept track myself. Did people who trade with TOS, IB, others get these?
I also have a further complication that Ameritrade still doesn't have the number right--they left out several trades. Besides, these options need to be marked to market so that I am not sure that a brokerage can know the true profit (loss) picture. I am pretty sure that I calculate my gains correctly, but I don't want a red flag at the IRS when they can't match this number on my return.
I tried talking to the Tax people at Ameritrade, but they (or at least the people I talked to) appear to be clueless. I also tried a tax bulletin board, but this is probably too far out of the regular range for that. I was hoping that people here might help since they have to (or should be) dealing with the same issue. Thanks for any help.
Chip
This year (2005) I received a 1099-B from Ameritrade with entries in lines 8-11 which is headed by "Regulated Futures Contracts". Specifically I have an entry for Net Profit (Loss) on Regulated Futures Contracts. I did not receive one from OX where I do most of my SPX spread trading and I don't recall getting one in the past (but I haven't checked). I just kept track myself. Did people who trade with TOS, IB, others get these?
I also have a further complication that Ameritrade still doesn't have the number right--they left out several trades. Besides, these options need to be marked to market so that I am not sure that a brokerage can know the true profit (loss) picture. I am pretty sure that I calculate my gains correctly, but I don't want a red flag at the IRS when they can't match this number on my return.
I tried talking to the Tax people at Ameritrade, but they (or at least the people I talked to) appear to be clueless. I also tried a tax bulletin board, but this is probably too far out of the regular range for that. I was hoping that people here might help since they have to (or should be) dealing with the same issue. Thanks for any help.
Chip