SPX Credit Spread Trader

That sounds like Austin Powers speaking lol.....

P.S. By the way, all attempts to have the baby named Austin Powers _____ if it is a boy are being thwarted by my wife :(

Quote from optioncoach:



So between the two we will get some nice diversity between the two.
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Quote from Prevail:

one place to start is to calculate expectency. (.7* 2) - (.3*3). 1.4-.9 equals .5. this is before trading costs. an early exit would easily bring the theoretical loss down.

my countertrend trading system had nearly 15 consecutive winning trading signals from dec to may. countertrend models have higher winning rates but they are even more pronounced in the sp so a premium selling method on it with strict exits is typically viable. this is one of the reasons rally does well.
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I am a big fan of counter trend trading. to an outsider it might appear i am trying to catch falling knives or short tops but when all is said and done these entries are much better for the type of trading that i do. Looking back at all my losers through the years, i can honestly say that 95% of my trades can be closed close to breakeven if my directional/vega expectations change while in the position. Another way to reduce the theoretical average loss of such system is to roll up/out and increase size instead of a simple offset but the success there is debatable especially in a high iv market.
 
Quote from jeffm:

RUT is the Russell 2000 index, and futures
ER2 is the EMini RUT futures on Globex
IWM is the ETF version of RUT (like SPY is for SP)
RMN is a mini RUT index (RUT/10) that trades options.
KRH is the Kurt Russell index. It tracks the number of times KR and Goldie Hawn are discussed in the tabloids. I was long KRH for years, but it crashed in 2001 along with the techs.
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Are ER2 options eletronically traded? (I use IB) How is the liquidity, sprad, etc?

Same questions for RMN, and that index options not futues options, right. Always prefered FO for the margin.
 
Besides IB, does anyone use or know of a discount broker with competitive rates and good filles offering ES?

M~


Personally, I'm interested in trading through Vtrader using haircut margin.... but many of my group members are not interested in series 7 certification. Thanks.
 
Coach,

By now you obviously see the huge advantage using HairCut marginl, especially in your current trade position.

For what reasons then are you still trading Reg-T?

Curious,

M~
 
Quote from Sailing:

Besides IB, does anyone use or know of a discount broker with competitive rates and good filles offering ES?
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I suppose you meant ES options, there's plenty of brokers providing ES trading. Hell even ox has it.

A friend of mine trades futures options through a tradestation account. Though those trades go off through another platform if i remember correctly. That's the only other discount retailer that i have heard of providing them.

Maybe our Chief Information Officer can give you a more accurate assessment? Paging mo to the thread LOL
 
Quote from optioncoach:

You have to remember that when I moved to SPX, I had to give up on put ratio spreads due to the large margin requirements.

Now with ES options and risk-based margins, I am free :). I could do the same with SPX options but I like ES more for matching my hedges and splitting the b/a spreads.

I will still post my SPX trades which are being done in the non-prop account so I have not left any of you behind (_|_).

Put ratio spreads are still credit spreads afterall lol...

So between the two we will get some nice diversity between the two.
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Coach,

I have heard that SPX futures options offer better liquidity/spread than ES options (but SPX futures options do not trade eletronically.) If the account is large enough, and you don't mind placing orders the old fashioned way, doesn't SPX futures options make more sense than ES options, or any other electronically traded options on futures that exist?
 
phil, if sp hits 1200 the vix/vxo could easily increase 50 percent, I would say closer to 75 percent is more likely, with vega exposure how do you handle this with your ratio spread?
 
I have zero experience with futures so maybe this is a stupid question. I see that Coach often posts that he would short futures in the event of a large, hard market drop.

But, won't a lot of traders be trying to short SP (and derivatives thereof) futures? Whose going to be on the other side to buy?
 
This paging business actually works LOL.

Yes, Tradestation uses RJO's MCD platform for trading ES options.

The only other discount broker I know that might support ES options are Xpresstrade.com but I think they specialize in pit traded contracts. E-mini's might not even be supported at all.

Besides, commissions were something like $10/contract + floor brokerage fees etc. Yikes!

I know nothing of the following other possibilities:

http://www.expressfutures.com/ (possible commissions price match)
http://www.arrowfutures.com/
http://www.eminidirect.com/


MoMoney.

Quote from rallymode:

I suppose you meant ES options, there's plenty of brokers providing ES trading. Hell even ox has it.

A friend of mine trades futures options through a tradestation account. Though those trades go off through another platform if i remember correctly. That's the only other discount retailer that i have heard of providing them.

Maybe our Chief Information Officer can give you a more accurate assessment? Paging mo to the thread LOL
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