SPX Credit Spread Trader

I have recently seen people mentioning Dan Sheridan. Has anybody looked into his mentoring program? I wonder how much it costs, and what your thoughts are about it.

Cody
 
MoMoney, Cache,

Thank you very much for your time. A "notional trade" is on the drawing board as we speak. I suppose it is pure impatience to try and solicit an exact response from the more experienced users of this thread. I currently use Options Express and their analytical tools obviously pale in comparison to ToS but I do understand what you are saying.

Thanks again
 
My opinion is that there is not much adjusting to do with an ATM credit spread. You either got the direction right or not. YOu should have a pre-set loss limit when ot get out based on time to expiration and your technical analysis of the market.

I could see possibly converting the spread to a butterfly but since this is off the top of my head I do not have an example to see if it is worth it. My initial inclination is that adding the debit spread to convert to butterfly will just eat all premium and lead to a small limited loss with a lottery ticket for more gians if stock settles at body strikes. Something to consider
 
Quote from ryank:

Rallymode or Cache,

Did either of you pull the trigger on a June 1240/1245 put spread yesterday with the drop down to 1270? I'm paper trading the 1245/1250 with a $1.10 fill to further my education on this particular strategy.
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i am sitting it out for the moment.
 
Quote from scienter:
If your spread is OTM or FOTM, why not put a debit spread on farther away from your short position? That way if there is a move towards your short, but it's not extreme (as likely in more cased than not if your using guaging trends/TA in some way), you have a chance for both your credit and debit spreads to finish in the money?
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I forgot to mention that I plan to put the long end of the debit spread 20 pts from the short strike on my credit spread.
 
As I don`t trade Verticals in my first phase I would like to ask you all what average % drop in open equity you experience on days like yesterday, assuming market near short ATM or rolling position.
 
Unrealized gians and losses swing pretty wild since your broker will value the positoins based on either last trade or the appropriate bid or ask to close or the mid-point. I try to ingnore these fluctuations since they are quite misleading. In other words my small 1250/1255 position is showing an unrealized loss but it will be profitable seeing as we are at 1271 now. When the market dipped the spread, which was opened for $0.20, was valued intraday at $1.00 and shrunk pretty quickly back to $0.50 or so as the market settled down. It is the nature of this strategy and how your broker will value the spread intraday.
 
Quote from ChrisM:

As I don`t trade Verticals in my first phase I would like to ask you all what average % drop in open equity you experience on days like yesterday, assuming market near short ATM or rolling position.
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Yeah, especially when trading FOTM credit spreads on SPX you really have to ignore the minute-to-minute fluctuations. You'll also notice that SPX spread quotes frequently drop toward the end of the day too. That can have a huge impact on your unrealized PnL.
 
I see my credits melting away........

Let's hear it for the sideways market today!

Go SPX..its your birthday.. we gonna decay like its your birthday....
 
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