SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
LOL. Sorry, it seems to be a trait of ET members that have reached over 500 posts: useful contributions get reduced down to cryptic one liners which are merely designed to spawn yet further questioning and queries....I shall vow never to repeat and hence buck the ET trend!
Furthermore, I seem incapable of finding a balance between short concise responses and lengthy verbose dissertations which I will no doubt subject you to right now:
My expression of :eek: was meant to be a virtual representation of my facial features just before I proceeded to bang my head against the wall. Of course, my fatal assumption was that everyone else has been bothered to read the entirety of the thread and are hence also aware of what has been discussed a trillion times hitherto. Naturally, given the enormity of this thread I suspect only a handful have actually achieved that mammoth task.
To answer your question, yes, other people do trade XEO here.
In fact, if you dare to venture into the dark ET underworld and use the voodoo magic of the Search function you will find by typing in: "XEO" and selecting "Journals" from the forum list you will get this list of posts, mostly originating from this thread that are pertinent to the use of XEO for this strategy.
In short, I believe you do get better fills on XEO options vs. SPX. Suggest you be very aggressive and use OEX prices as guides. The real "inside" market on XEO options are a lot tighter than those that are quoted on your screen. XEO options are PM settled i.e. you don't need to worry about SET etc. and can trade options in theory right up till the last minute on Friday before expiration. Watch S&P futures closely if you intend to trade after the bell.
There are drawbacks compared to the SPX but if you scan some of the posts I refer you to, you will find out what they are!
Good luck!
MoMoney.
Furthermore, I seem incapable of finding a balance between short concise responses and lengthy verbose dissertations which I will no doubt subject you to right now:
My expression of :eek: was meant to be a virtual representation of my facial features just before I proceeded to bang my head against the wall. Of course, my fatal assumption was that everyone else has been bothered to read the entirety of the thread and are hence also aware of what has been discussed a trillion times hitherto. Naturally, given the enormity of this thread I suspect only a handful have actually achieved that mammoth task.
To answer your question, yes, other people do trade XEO here.
In fact, if you dare to venture into the dark ET underworld and use the voodoo magic of the Search function you will find by typing in: "XEO" and selecting "Journals" from the forum list you will get this list of posts, mostly originating from this thread that are pertinent to the use of XEO for this strategy.
In short, I believe you do get better fills on XEO options vs. SPX. Suggest you be very aggressive and use OEX prices as guides. The real "inside" market on XEO options are a lot tighter than those that are quoted on your screen. XEO options are PM settled i.e. you don't need to worry about SET etc. and can trade options in theory right up till the last minute on Friday before expiration. Watch S&P futures closely if you intend to trade after the bell.
There are drawbacks compared to the SPX but if you scan some of the posts I refer you to, you will find out what they are!
Good luck!
MoMoney.
I am on the same boat but for now I am still holding. It's going to test the MA(50) at 726 and should retrace to the MA(200) at 705. I hope my prediction is right.
It's too overbought right now. I sold my hedge at the close for 3K. So with my hedge I am only down 2K and with the PUT side credit I got, I am like break even for now.
But expect some pull back next week and also the 4 days holiday should provide with some time value.
I am still selling the heck out of it. I have an order to sell the 760/770 just to be able to pay for any inconvenient closing of the 720/730.
Any close above 726 MA(50) I am closing it. But my indicators tell me to hold on for now.
Good luck
It's too overbought right now. I sold my hedge at the close for 3K. So with my hedge I am only down 2K and with the PUT side credit I got, I am like break even for now.
But expect some pull back next week and also the 4 days holiday should provide with some time value.
I am still selling the heck out of it. I have an order to sell the 760/770 just to be able to pay for any inconvenient closing of the 720/730.
Any close above 726 MA(50) I am closing it. But my indicators tell me to hold on for now.
Good luck
Spec's for all indexes can be found on the CBOE website.
http://www.cboe.com/Products/Cash-SettledIndexOptions.aspx
I don't trade the RUT, but it's there.
http://www.cboe.com/Products/Cash-SettledIndexOptions.aspx
I don't trade the RUT, but it's there.
Well remember that the article was on combining ratio spreads and stock positions.
But in general, I would do ratio spreads on ES options since I have better margins/haircuts than if I did them on SPX where I will stick with credit spreads. Ratio spreads have hidden lottery tickets despite the additional risks of the naked puts but like anything else they have to be managed well.
But in general, I would do ratio spreads on ES options since I have better margins/haircuts than if I did them on SPX where I will stick with credit spreads. Ratio spreads have hidden lottery tickets despite the additional risks of the naked puts but like anything else they have to be managed well.