SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
How easier to manage short leg?
If crash through short strike will end up further on left side of put calendar(loss) on atm than otm. I am referring to P/L diagram.
Got to plug all this into option simulator. I miss my old TOS acct from 2 yrs ago. Still got that stupid monkey somewhere. Can't find similar function on IB. Need to either open small acct at TOS or get some software. Just don't feel like forking over 3K+ to OptionVue. Might need to ask the monkey.
I'm in the same boat. Have an IB acct, no real interest in a ToS account except for the software and forking over 3K is a bit much at this stage in the game for me. Maybe after I make my first 10 million, then I'll consider it. 
Maybe I will open a ToS acct and let it sit there, what's the minimum?
Maybe I will open a ToS acct and let it sit there, what's the minimum?
$3500 to open a ToS acct. Hmmm.
Quote from spreadn00b:
I'm in the same boat. Have an IB acct, no real interest in a ToS account except for the software and forking over 3K is a bit much at this stage in the game for me. Maybe after I make my first 10 million, then I'll consider it.
Maybe I will open a ToS acct and let it sit there, what's the minimum?
So this is a directional trade (ie put on when short signal is generated)? Or is it put on when IV is low?
Ok, I don't mean to ask a silly question but here it goes. I reviewed Sailing's powerpoint presentation on haircut margin. On the double diagonal page (page 29 of the presentation) he shows margin of $13,700 on the DD. How do you calculate haircut margin? I have seen it mentioned in more than one place that it is 6% up and 8% down on SPX. Obviously it is easy to calculate what the percentages are up/down from the current market level but how does this translate into haircut? Sorry for being so dense, I've never dealt with haircut before and am trying to get a handle on it.
If I'm following you correctly, place a DD at 1SD and the price stays relatively constant until you start getting close to expiration. I did a quick model of this in TOS based on what it cost me for my DD I put on a few weeks ago vs what a DD would cost today at 1SD from the market. The cost is nearly identicle BUT the short strikes are much closer to the market now than they were then.
Well, actually I was thinking of the Nov 1250/Oct 1275 put diagonal which is around $2.15 on the mid right now. Over the past couple of weeks when I've looked at it, it's been around $2.00 to $2.50.
This observation is purely anecdotal and I have not actually kept track. I was using this anecodotal observation in conjunction with some posts that Murray has made (assuming I understood him correctly). It would be a function of volatility and theta, wouldn't it.
However, I have not yet placed a diagonal. It could be much harder to get filled near the mid closer to expiration than further from expiration.
Also, with the SPX at 1350 does it make sense to place this put diagonal now. I suspect that if Murray chimes in he would want me to bring it up at least 25 points and possibly 50 points.
The Nov 1275/Oct 1300 has a mid of $2.75.
This observation is purely anecdotal and I have not actually kept track. I was using this anecodotal observation in conjunction with some posts that Murray has made (assuming I understood him correctly). It would be a function of volatility and theta, wouldn't it.
However, I have not yet placed a diagonal. It could be much harder to get filled near the mid closer to expiration than further from expiration.
Also, with the SPX at 1350 does it make sense to place this put diagonal now. I suspect that if Murray chimes in he would want me to bring it up at least 25 points and possibly 50 points.
The Nov 1275/Oct 1300 has a mid of $2.75.