SPX Credit Spread Trader

Great, I can see CNBC in Greece:

"We are waiting the Greece GDP numbers and inflation numbers here at 8:30 AM...

OK here it is, GDP at 2.3%, revised from 2.2% due to decreased activity in the pimps and hoes sector. This was expected given the slow spring season and should pick up as tourist season begins.

CPI up .4%, a little hotter than the .3% analysts expected. Most of the increase however seems to come from the average cost per BJ increasing 300 drachma on a quarterly basis. If you strip out lapdances and 2somes, core CPI is still in line with expectations."

:D

Quote from rdemyan:

On the lighter side of things:

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ATHENS, Greece (Reuters) -- Prostitutes and smugglers will give the Greek economy an unexpected boost as their illicit activities will now be counted in the country's official economic output, a senior official said on Wednesday.

Under pressure from the European Union to cut its deficits, Greece is revising its gross domestic product to include part of the booming black economy, boosting its output by at least 10 percent in 2006, the country's chief statistician told Reuters.

"The revised GDP will include some money from illegal activities, such as money from cigarette and drinks smuggling, prostitution and money laundering," National Statistics Service chief Manolis Kontopyrakis said in an interview.

Greece's economic output was 180 billion euros ($228 billion) in 2005 and is estimated at 194 billion euros this year, while the black economy is estimated at about 40-60 billion euros a year.

Copyright 2006 Reuters. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed.

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Here's the answer from OX about the below hedged position.

Kim: ok, in order to place this trade, you would still need to hold at least 50% of the amount of the short stock in cash
Kim: there would be no releif for the long call to offset that position
Heather: so you dont offer haircut margin?
Kim: no, we do not offer the margin releif on this type of position



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Well I was saying that that is your max risk, a good retail broker should also count it that way and not treat it as a short stock margin and a long call. You might not need haircut to do that. if you were short stock and bought a call, your Reg T margin should drop. Ask your broker (ToS or OX) to see.





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Quote from Heatheranderson:

Coach and others,
My idea is scalping without worrying about greeks.I intend to purchase front month calls and keep shorting SPY whenever appropriate. If i do this in retail account i have to put up 50% stock cost as well as the cost of long calls which will reduce the ROI. But with just $2000 and cost of long calls, the ROI would be lot more.
what do you think?.
 
Heather, if this came from the live support, I would call the trade desk. I have gotten bad margin info from Live support on OX. Talk with the margin guy.
 
Quote from optioncoach:

Great, I can see CNBC in Greece:

CPI up .4%, a little hotter than the .3% analysts expected. Most of the increase however seems to come from the average cost per BJ increasing 300 drachma on a quarterly basis. If you strip out lapdances and 2somes, core CPI is still in line with expectations."

:D
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On positive side - it is good to know that only my country of origin brings some fun to the world when trying to do something smart :D

Back to biz - Coach, can you show the numbers - min and max value for 1340/1350 EW/ES you have observed through the life of this spread ?
 
Quote from RichardRimes:

boring day trying to learn how to paste stuff...sorry

edit..crap now that I did it I can't remember HOW I did it :D
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I used to trade flies. The best results I had was with buying back body on dips and then selling them again. This works for normal market however, i.e. making corrections, not flying to the sky all the time :)
 
Yes, try the margin desk since the position is hedged I would assume that even under Reg T. it would not be treated as a separate short and a long call.

Been a while since I have done a position like that so I may be wrong... But call compliance/margin department.

Quote from cdowis:

Heather, if this came from the live support, I would call the trade desk. I have gotten bad margin info from Live support on OX. Talk with the margin guy.
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Quote from ChrisM:

I used to trade flies. The best results I had was with buying back body on dips and then selling them again. This works for normal market however, i.e. making corrections, not flying to the sky all the time :)
More...

This actually was an adjustment to my current spread...as we discussed earlier in this thread using a B-fly to roll up. deleted it now but was trying to substitute another chart...hope no one minds...
 
Phil will post his numbers later, but in the meantime, here are the numbers for an EW diagonal I have going off the board today.

9/15 ES 1332
sold SEP EW1350C for 2.30, bot OCT ES1370C for 2.30, net debit $0.

As the mkt moved up on 9/20, the spread hit its max loss, which was about (1.10). When SPX dropped the next day, the diag went to a profit of 0.20 or so. This again dropped to (0.75) as SPX climbed early this week.
The last 3 days of this week have been perfect for a call diag, i.e. flat. As the value of the EW shorts has drained, the spread has moved to 2.60.
At today's end, I am expecting the spread to finish at about 3.40.

Of course, if we jump up a few points over ES1350 this afternoon, hilarity will ensue :mad:

Quote from ChrisM:

Coach, can you show the numbers - min and max value for 1340/1350 EW/ES you have observed through the life of this spread ?
More...
 
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