SPX Credit Spread Trader

Quote from cdowis:
BTW, regarding the black swan. He suggests one method by putting "ears" on the put side. If you have 10 longs, place two of them in front the short put, and the other eight on the wing. [/B]
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Do any of you do this? Is it a good idea?
 
It's known as a "Slingshot/Hybrid Hedge" in Cottle's terminology.

More info in the Hybrid Hedge chapter of his latest book

In this instance a long vertical (2 bear put spreads) opposite a short vertical (8 bull put spreads)

Depending on the amount of protection you want, you adjust the ratio and width of verticals. Of course, cake + eat it = not possible i.e. you have to pay for this insurance.

Suggest having a look at the risk profile to see exactly how this would behave in a black swan scenario.

Other hedging strategies discussed here

MoMoney.


Quote from scntaxpro:

Do any of you do this? Is it a good idea?
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Does anyone trade OIL, specifically the oil mini (QM)? I've been playing with this a bit, I normally trade the ES during the day, but the afternoon have been range bound and a bit boring. The volatility around the economics (ie inventory) tend to make for an relatively easy play (check out the move at 10:30), caught the 10:30 release for nice ride.
 
Quote from BoSox1962:

Does anyone trade OIL, specifically the oil mini (QM)? I've been playing with this a bit, I normally trade the ES during the day, but the afternoon have been range bound and a bit boring. The volatility around the economics (ie inventory) tend to make for an relatively easy play (check out the move at 10:30), caught the 10:30 release for nice ride.
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What thread are you on?:confused:
 
No bites today from the MM's, even at .15 off the mid at times. Oh well, tomorrow is another day and will just take what the market gives me.
 
Yes, I have found myself doing the same thing. Starting earlier and getting out before expirations.


Quote from ryank:

I've found myself gravitating to the 45d-15d rollover or there abouts, I used to go more towards 35d-0d. The last two weeks on my FOTM positions hardly budge, they are always stuck at .10-.20ish so I haven't been sticking around for expiration.
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Coach, Just found this site about a week ago. I can't tell you how amazed I was when after a couple hundred pages I clicked to the end to find out I still had 800 pages to go. Anyway, I wanted to follow some current events while I played catch up, so I have been reading from both ends. I came across your entry about possibly starting a new thread and I wanted to humbly request you delay this to allow me to finish the unread pages.
I can't tell you what a wonderful education this has been for me and I also wanted to tell you how much I enjoy the numerous and varied opinions and insights brought to the subject by all the other traders posting here. I think I would follow this thread even if I wasn't interested in trading. It's sort of like walking into Cheers. Best of luck to all. Hoping to be posting in the near future.
 
If you are doing requests Coach how about a thread which is comprised completely of JA pics from the last 900 odd pages.

No smalltalk, no catfights, no bs, no educashun.....just piccies.
with a touch of the airbrush!

I live outside the US and my trading starts around 4.00am, so it sure would be a nice way to start the day......:D
 
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