SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
I got burned by the SPX SET 2 weeks ago.
Had a SPX bear credit spread for 1285/1300. It closed at 1279 Thursday and the SPX even opened at 1280, flirted with 1286-1288 in the morning for like an hour...but somehow the SET was 1288.95, essentially the high for that day, which is somehow the price they came up with based on all the SPX companies "opening" prices.
Since then, I've decided to follow the lead of more experienced people on this board and close out when I've got a good profit or it gets within 5-15 pts. Learned the danger of SET the hard way
Had a SPX bear credit spread for 1285/1300. It closed at 1279 Thursday and the SPX even opened at 1280, flirted with 1286-1288 in the morning for like an hour...but somehow the SET was 1288.95, essentially the high for that day, which is somehow the price they came up with based on all the SPX companies "opening" prices.
Since then, I've decided to follow the lead of more experienced people on this board and close out when I've got a good profit or it gets within 5-15 pts. Learned the danger of SET the hard way
Rally,
It's even better than that....it is only 4 weeks to Sept. 15!
It's even better than that....it is only 4 weeks to Sept. 15!
Quote from rallymode:
IMO this is a pretty good place to open SEP bear call spreads at 1325 or higher. Whether it's the top or not, we will know in 5 weeks
I dont think the SPX breaks 1325 but i've been wrong before.
Well I left my short 1315 AUG EW strike in place because I feel we will run out of steam perhaps soon. I could be wrong but I do not think we will make new highs in the ES or SPX by SEP expiration.
No one knows... that's the beauty of trading. So.. instead trade your GREEKs, rather than the charts.
As Maverick once told me.... your risk, capital, margin, ... they do not understand support and resistance. Your risk is what it is at this moment in time...
So... trade the greeks according to your trading plan, not the graphs.
IOW, do you want to be long VEGA, long GAMMA, short DELTA.
Trading has become much more profitable since I began trading GREEKs rather than positions.
M~
PS... We're LONG vega... in a big way going forward. Multiple put diagonals placed today.....
As Maverick once told me.... your risk, capital, margin, ... they do not understand support and resistance. Your risk is what it is at this moment in time...
So... trade the greeks according to your trading plan, not the graphs.
IOW, do you want to be long VEGA, long GAMMA, short DELTA.
Trading has become much more profitable since I began trading GREEKs rather than positions.
M~
PS... We're LONG vega... in a big way going forward. Multiple put diagonals placed today.....
Mark:
I recently opened an account with IB which I have not yet funded.
Just out of curiousity, what is the customer support like? Can I call them to help me get a trade filled, like I can with ToS?
Even though ToS is a bit more expensive than IB, I think they are worth it. The pennies extra I pay in commissions is far outweighed by the number of times they've helped me get good fills.
I'm only opening the IB account to have access to options on futures. If ToS had that feature, it would be a no brainer.
I recently opened an account with IB which I have not yet funded.
Just out of curiousity, what is the customer support like? Can I call them to help me get a trade filled, like I can with ToS?
Even though ToS is a bit more expensive than IB, I think they are worth it. The pennies extra I pay in commissions is far outweighed by the number of times they've helped me get good fills.
I'm only opening the IB account to have access to options on futures. If ToS had that feature, it would be a no brainer.
Quote from Sailing:
Will work on that after the close....
Murray,
Appreciate your help but don't worry about it. We're all flat out busy. I'll just play around with IB to get the risk profile graph. I think i've got it figured out
By the way I understand how you can get your 2.25 debit. Yesterday the SEP/OCT 1225/1200 diagonal had a mid of 2.45 before I retired for the night. So it is possible buy them at a good price. Just have to be patient and keep throwing a line to the MM's like you said. And also wait for very very low VIX