SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Basic question:
Based on the discussion in this group, I am looking at butterflies. What are your suggestions on legging into.
In terms of margin, I need to take it as vertical spreads. e.g. I am researching the 1285/1305/1325 call, with short body.
1285/1305, and 1305/1325 spreads. How would I play with limit orders in putting this on?
Thanks
Based on the discussion in this group, I am looking at butterflies. What are your suggestions on legging into.
In terms of margin, I need to take it as vertical spreads. e.g. I am researching the 1285/1305/1325 call, with short body.
1285/1305, and 1305/1325 spreads. How would I play with limit orders in putting this on?
Thanks
You mean there's more than one way to do it? Doh!
I decided to try start closing out my positions early in hopes to enter some June spreads earlier.
With the huge drop the last two days, on Friday 5-12 I closed my Call Spread for $0.05. I have a limit order on the Put Spread for $0.05 but I'm not holding my breath on this one and may need to increase the debit and close it out if the market keeps tanking. Will be watching carefully Monday am. The month is almost over. Good luck to all!
Rookie Rich
With the huge drop the last two days, on Friday 5-12 I closed my Call Spread for $0.05. I have a limit order on the Put Spread for $0.05 but I'm not holding my breath on this one and may need to increase the debit and close it out if the market keeps tanking. Will be watching carefully Monday am. The month is almost over. Good luck to all!
Rookie Rich
If you're genuinely interested in trading weeklies, the best education is to try trading them to find out your own ideas.
It's perhaps stating the obvious, but following someone else's style presumes you share similar objectives, risk appetite and even personality.
There's no barrier to entry. The contract specifications are clear and precise.
You have access to tools for analysis and stress testing. You have access to historical data and the ability to forward test and/or paper trade.
You have access to mutiple educational resources.
I might be being presumptuous, but there is no need to be hamstrung by the lack of someone else documenting trades on these products in order to start trading them for oneself.
It's all a big adventure.
It's perhaps stating the obvious, but following someone else's style presumes you share similar objectives, risk appetite and even personality.
There's no barrier to entry. The contract specifications are clear and precise.
You have access to tools for analysis and stress testing. You have access to historical data and the ability to forward test and/or paper trade.
You have access to mutiple educational resources.
I might be being presumptuous, but there is no need to be hamstrung by the lack of someone else documenting trades on these products in order to start trading them for oneself.
It's all a big adventure.
Rally, well I held on to the 1305/1300 put debit spread from Friday. Thought about closing it but didn't.
I bought it at SPX=1308 for $1.80 and closing value on Friday was $2.50... even though SPX had sunk to 1291. The b/a was just too wide and I felt "cheated" to close. Next time I'll do at least 10 pt spread.
I bought it at SPX=1308 for $1.80 and closing value on Friday was $2.50... even though SPX had sunk to 1291. The b/a was just too wide and I felt "cheated" to close. Next time I'll do at least 10 pt spread.
Quote from rallymode:
well it only has a meaning in retrospect so i dont know what to tell ya
however, since you seem to be considering the NDX as an indicator then it is getting close to some serious support so i dont know how much further downside there is unless some bad news comes out.
if we are in for a ride to 1280 then fine, you will miss an opportunity if you close now for a small profit, but what if a bounce back hard here?
just something to think about.
What is nice about Europe (among many others) is time zone.
ES was down -8.50 about 30 minutes ago, which means you may have additional chance to hedge from here in case of disaster.
It was about 4.30 AM EST and from this side of the pond can be easily handled.
Another thing here - I traded currencies some time ago, switching shifts. The same might be the future for S&P500.
ES was down -8.50 about 30 minutes ago, which means you may have additional chance to hedge from here in case of disaster.
It was about 4.30 AM EST and from this side of the pond can be easily handled.
Another thing here - I traded currencies some time ago, switching shifts. The same might be the future for S&P500.