SPX Credit Spread Trader

Quote from rdemyan:

I'm not going to post here because the mud slinging and the nastiness in the forum is not appealing.
More...

Subtle way of letting everyone know you are none too pleased! Just picture everyone sitting naked at their computers and everything will become all better :)

If I was perceived as being party to any nastiness and/or mud slinging - my apologies for that.

Ask away. FYI, if it is a general trading quesiton, you may have access to a wider and more diverse opinion over in the Options Trading Forum. Not sure I've ever seen you down there.
 
Quote from codyhopkins:

Coach,

55 Minutes until open, futures are up nice. You are looking good! Congrats on hanging on.
More...

Wrong, my friend. Yesterday pre open was even more up than this. You know the final.
 
Quote from ChrisM:

Wrong, my friend. Yesterday pre open was even more up than this. You know the final.
More...

SET is the opening price. I doubt Coach cares about what happens after that (as far as MAy SPX goes).
 
Agree, but SET for Phils short PUT credit spread at 1255 should be more in line with what futures are reflecting now. I would have assumed he had closed the spread yesterday though.

On a separate note, have we sold off enough now to consider bouncing off the 200SMA (SPX 1257.7)?

Quote from ChrisM:

Wrong, my friend. Yesterday pre open was even more up than this. You know the final.
More...
 
Quote from momoneythansens:

Agree, but SET for Phils short PUT credit spread at 1255 should be more in line with what futures are reflecting now. I would have assumed he had closed the spread yesterday though.

On a separate note, have we sold off enough now to consider bouncing off the 200SMA (SPX 1257.7)?
More...

I no longer use any AT indicators for this. I use ODI developed by myself and according to its calculation market can still go down to 1245/1250 without consideration of changing long term pattern.

However, as deeper south we go, probability of reversal grows dramatically.
 
Quote from ChrisM:

I no longer use any AT indicators for this. I use ODI developed by myself and according to its calculation market can still go down to 1245/1250 without consideration of changing long term pattern.

However, as deeper south we go, probability of reversal grows dramatically.
More...

ChrisM to clarify, are you thinking 1245/1250 in the near future or a possible close for June? I'm seeing greater volatility for June is anyone considering doing condors or B-fly's this coming month?
 
Quote from Aardvark:

ChrisM to clarify, are you thinking 1245/1250 in the near future or a possible close for June? I'm seeing greater volatility for June is anyone considering doing condors or B-fly's this coming month?
More...

No, ODI measures maximum deviation of series i.e. there is still chance to go lower without breaking long term trend, but not necessarily closing at such level. In fact as we have studied max high/lows vs. close since 1999 very closely, series very rarely close at maximum highs/lows, so closing at such level is relatively unlikely.

Answering your question - as I don`t trade ICs in first phase of trading cycle, so can`t say what is the best, but historically high volatility rarely lasts for long except for periods when market changes long term trend direction. Market may look scary when volatility is high (looks like can reach any level easily) but combination of high IV and time-to-expiry gives great opportunity for sellers. How do you hedge and adjust position is another story.
 
Quote from Li Ka Shing:

Sorry what is ODI..?

Original Data Interface..?
More...


This is abbreviation for Option Deviation Index. It was published in March 2005 "Futures" Magazine.
 
You must log in or register to reply here.
Back
Top