SPX Credit Spread Trader

[Aardvark]

Quote from iprph90:

for learning purposes, i would appreciate any and all comments on this trade especially in the context of it vs FOTM: july spx iron fly 1250/1185/1315. max credit 1 contract $4,230 (assuming filled at mid) max lost $2,270. margin $2,270. breakeven 1207.70/1292.30. ToS 6/11/06. thanks!!

buying or selling? buying (+1)1315call (-1) 1250p&(-1)1250C (+1) 1185 put.....is this the position?...because I get 22.85 per contract... which just means your BE is 22.85 either side of 1250. So if you buy the IFly you want the spx to be close to 1250 in July and the farther away you give back then lose money after it moves 22.85 from the sweet spot. It could be good if volatility goes down and the spx doesn't go anywhere in the next 40 days...lower probability but higher reward if hit. I get BE at 1227 and 1272

 

[Aardvark]

also your max loss is much more than that...look at it again...remember and Iron Fly is short(long) the MIDDLE strike...

 

[iprph90]

Quote from Aardvark:

buying or selling? buying (+1)1315call (-1) 1250p&(-1)1250C (+1) 1185 put.....is this the position?...because I get 22.85 per contract... which just means your BE is 22.85 either side of 1250. So if you buy the IFly you want the spx to be close to 1250 in July and the farther away you give back then lose money after it moves 22.85 from the sweet spot. It could be good if volatility goes down and the spx doesn't go anywhere in the next 40 days...lower probability but higher reward if hit. I get BE at 1227 and 1272

selling...i put trade in as iron condor on ToS and adjusted strikes.. credit is 42.30.

 

[Aardvark]

I'm on the tos platform as well and I just don't get what you are getting...are you are the "real" or paper trade side? cuz I heard the paper side was messed up do to upgrading. If your on the real side just make sure that 1250 call and put are BOTH either + or - perhaps someone else can check their platform.

should look like this"

Sell -1 1250 call
+ 1315 call
-1 1250put
+ 1185 put

 

[El OchoCinco]

As written your position makes no sense. please review the postion again carefully and tell us the exact striks and prices. Those strikes are not an OTM IRON FLY. So please give us more info and correct strikes....

Quote from iprph90:

for learning purposes, i would appreciate any and all comments on this trade especially in the context of it vs FOTM: july spx iron fly 1250/1185/1315. max credit 1 contract $4,230 (assuming filled at mid) max lost $2,270. margin $2,270. breakeven 1207.70/1292.30. ToS 6/11/06. thanks!!

 

[iprph90]

Quote from optioncoach:

As written your position makes no sense. please review the postion again carefully and tell us the exact striks and prices. Those strikes are not an OTM IRON FLY. So please give us more info and correct strikes....

sorry for the confusion, but as i see it on ToS the july 1250 straddle is 55.20 credit, the 1185 put is at~8.5 and 1315 call is at ~4.40...please correct me if i'm wrong.

 

[Aardvark]

Quote from iprph90:

sorry for the confusion, but as i see it on ToS the july 1250 straddle is 55.20 credit, the 1185 put is at~8.5 and 1315 call is at ~4.40...please correct me if i'm wrong.

my mistake I was looking at June your correct
selling the straddle and buying the wings does give you your points and again I think a possibility as long as vol goes down and strike stays close to 1250.

 

[Aardvark]

I actually like it a lot. I have a position on Jul 1240/1225 put and 1310/1325 call IC (credit 6.70) that I want to hold for a couple of weeks to get some theta and possibly lower vol profit...we'll see. I may paper trade yours

 

[Aardvark]

btw are you still doing the Iron Fly's on the weekly's? working ok? I've had one hit and one miss on the long side, also how are the fills? and volume?

 

[mantenar]

Hi,

I like this position. Even the vol drops and increases a little. there is not much risk. This position will not have short gamma risk. Is it covered in TOS seminar.

Quote from iprph90:

for learning purposes, i would appreciate any and all comments on this trade especially in the context of it vs FOTM: july spx iron fly 1250/1185/1315. max credit 1 contract $4,230 (assuming filled at mid) max lost $2,270. margin $2,270. breakeven 1207.70/1292.30. ToS 6/11/06. thanks!!