SPX Credit Spread Trader

riskarb · May 23, 2006

If you have the ability to sell index futures... do it. If we get any reasonable pop from the deep futures disc:cash tomorrow, cover all your bull verticals.

Cache Landing · May 23, 2006

Quote from riskarb:

If you have the ability to sell index futures... do it. If we get any reasonable pop from the deep futures disc:cash tomorrow, cover all your bull verticals.

You really think it is that bad?

fh2000 · May 23, 2006

Newbie questions:

I. Is SPX cach settled?
2. American style or European style?
3. What is the risk for each one point (or 10 points) strike difference? meaning, for each Bear Call Spread like this +1265C/ - 1255C, how is the risk calculated?

Thanks

Cache Landing · May 23, 2006

Quote from fh2000:

Newbie questions:

I. Is SPX cach settled?
2. American style or European style?
3. What is the risk for each one point (or 10 points) strike difference? meaning, for each Bear Call Spread like this +1265C/ - 1255C, how is the risk calculated?

Thanks

All info on this and all other indices can be found at www.cboe.com

riskarb · May 23, 2006

Quote from Cache Landing:

You really think it is that bad?

Not trying to add to public hysteria... but the close was as ugly as I have seen, barring exogenous [non market] events. I haven't seen my bbg news page, but I can't imagine any osama tape or bird flu news causing this action.

trkarl · May 23, 2006

Quote from ryank:

There is a very fine line between bravery and stupidity .

All it takes is a couple of beers.

Cache Landing · May 23, 2006

Quote from riskarb:

Not trying to add to public hysteria... but the close was as ugly as I have seen, barring exogenous [non market] events. I haven't seen my bbg news page, but I can't imagine any osama tape or bird flu news causing this action.

Hey, bird flu is a big deal!!! LOL

Cache Landing · May 23, 2006

BTW, I do think we will reach 1245 tomorrow, but I'm still predicting that we will stall there for a bit.

(Of course that's what I'm predicting. That's where I profit the most.)

rallymode · May 23, 2006

This thread is very quiet when the market is selling off. You people need to cheer up. Everything will be alright.

Our JA is #2 on Maxim Hot 100.

riskarb · May 23, 2006

Quote from Cache Landing:

BTW, I do think we will reach 1245 tomorrow, but I'm still predicting that we will stall there for a bit.

(Of course that's what I'm predicting. That's where I profit the most.)

Futures are trading 700 under cash.