SPX Credit Spread Trader

Right now I'm getting .95/contract with TOS's EX/Rates program. I'm trading around 150 contracts/side of credit spreads, around 50 for diags/month. Is anyone getting a cheaper rate than .95? I remember someone saying they were trying to get .75.

Also, remember that if your trading over 50 contracts, make sure you hit the SEND TO TRADE DESK button when submitting a order with TOS. That will send it to their trade desk and usually result in a better fill. Their trade desk will possibly call the pit or shop the order if it's large.

Please, please, please $SET below 1330......... baby needs a new pair o shoes.....

Also, anyone know when TOS is finally releasing their VOL tools. It's really the only thing missing, and I'm jealous when Sheridan uses "that other program" to do all the nice analysis in the cboe videos.

buurrr.


Quote from RichardRimes:

Jim TOS has even better rates if you trade 20+ contracts...they are truly awesome..give it a try..they will beat the heck out of OX
More...
 
RR:

What's the rate if you trade 20+? I recently added money to my account and am starting to trade 20 lots instead of 10.

Quote from RichardRimes:

Jim TOS has even better rates if you trade 20+ contracts...they are truly awesome..give it a try..they will beat the heck out of OX
More...
 
Coach:

It looks like your still up even though it's pushing midnight on the East Coast.

Here's something I've been wanting to discuss but work has kept me too busy to get around to it.

In August I hedged my bear call positions by buying SPX calls instead of SPY calls in a ratio of about 1 hedge to 5 existing credit spreads. The nice thing about using the SPX was that when I modeled it in ToS, I could clearly see the effect the hedge had on my position. In fact, the curve looked like Murray's diagonals. This hedge was the "mouse ear" that Dan Sheridan talks about. It looks just like the diagonal, but it doesn't have the power of the diagonal when the short is breached. By power I mean the mitigating effect on losses once that short is breached. As far as I can tell, I can't get a nice "Analysis" graph in Tos plotted with the SPX on the x-axis, when I have an SPX credit spread and a SPY hedge. But when using the SPX hedge I can. And while it is really no different (using either th SPY or SPX), the ability to see the visual told me exactly how much hedging power I had and exactly where to make moves or not. I wasn't able to do that with the SPY before.

This type of visualization meant that I didn't have to consider adjusting at about 15 points from the short strike but was actually rooting for the SPX to aproach my short (but like you, I have to admit that this makes me nervous; also, unlike the diagonal there aren't a plethora of adjustments). The mouse ear just hedges the overall potential loss and gives one more room before having to consider an adjustment.

However, I'm wondering if anyone knows if it is possible in ToS to combine SPX and SPY positions in the Analysis tab and plot the graph just against the SPX price. I wasn't able to figure out how to do that, but it works innately if the SPX is used as a hedge instead of the SPY.

Quote from optioncoach:

Still waiting for the $6k apology LOL.....

OH well hopefully we get a down day tomorrow and I can grab my OCT SPX put position.
More...
 
Question for Mav.

Right now I'm busy building my business, but in 5 to 7 years, when I plan to retire, I want to become a serious option trader.

What does a retail trader need to do in order to qualify to eventually open up an account with your firm (I'm assuming you only have prop accounts but could be wrong on that).

I'm just curious about the process.
 
Quote from rdemyan:

Jim:

Seriously recommend that you consider switching to ToS.
More...

I am opening a ToS account as well. Though, i dont intend to trade options with it. So who do i call again? :D
 
Pray tell. What do you intend to trade?

Quote from rallymode:

I am opening a ToS account as well. Though, i dont intend to trade options with it. So who do i call again?:D
More...
 
You must log in or register to reply here.
Back
Top