SPX Credit Spread Trader

I'm playing a bounce here.

I took a +1.5 profit from the NOV 1335 puts of my synthetic straddles and replaced them with the 1325s for a more bulish profile.

Also sold the NOV 1345/1350 put vertical for 1.5
 
Well I was reviewing my sheets and I made a fat finger mistake so I did not have the exact CROSS FLY I had after rolling the DEC EW from 1385 to 1395. So I took off everything today that was short and, long story short I rolled my NOV 1385 50 EW Calls into a 1385/1390 Bull Call Spread and now I also have 25 DEC EW 1395/1400 Bull Call Spread (don't ask, X-Trader is not the simplest for entering option on futures orders lol- easy for quick mistakes to be made).

So we cannot follow this position and see exactly what happens because I messed it up lol.

I still have the put cross fly on but it is at 1330 strike so well OTM but potentially profitable if we fall fast the next week and a half..

Sorry for the confusion and mistakes, but too many fat fingered mistakes to follow it properly so when it doubt take it off. I do not think it caused any damage since I took in a large net credit to get out so that covered any mistake I made. Oh well, this has been a stressful month...

I have been busy testing and researching the cross FLYs and I love their risk/reward profile and the profit potential. The risk is very limited and the margin is almost non-existent for haircut so I can make better use of the funds and leverage.

Stay tuned as I mix in these cross FLYs with the credit spreads.

Still have the SPX one open as well.



Quote from optioncoach:

ADDITIONAL ADJUSTMENT TO CROSS POSITIONS:

......


4. Rolled my DEC EW 1385 strike into a DEC ew 1395 strike to reduce the effect of the DEC EW premium the options will trade at for a net debit of $7,500.. I think the cost is worth it given the profit potential.

COMBINED NEW CREDIT OF ALL = $4,237.50
More...
 
SEC set to relax margin rules in move to cut trading costs

By Jeremy Grant in Washington
Published: October 16 2006 03:00

The US is poised to relax margin rules introduced after the 1929 Wall Street crash with the approval of a system that will cut securities trading costs and pave the way for "multi-asset" trades across equities, options and futures.

Full article here: http://www.investorshub.com/boards/read_msg.asp?message_id=14085087

Much more relaxed rules than Reg T.
 
Easy come easy go...

SPX up 8 points on the open, I jump in the shower, SPX up only 2.76...

Was it something I did lol..... I hope no one was spooked into an adjustment at the top.
 
I was lucky. I thought about making adjustment because of the pre-open future action, but I had to take my kid to school. Just come back and I am back to green. My call diagonal is too deep in the money (short strike is 760).
 
Quote from momoneythansens:

I started a thread a couple of days ago here:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=78836

Also, discussions have been taking place here:

http://www.elitetrader.com/vb/showthread.php?threadid=78820
More...

I have spoken to several people regarding the new REG T rules and I really don't think it will benefit anyone here. Basically what they are going to do is give specific protection for those that are long synthetic calls (long stock/long put). It's actually a smart move as it allows the retail public to insure their portfolios. This will also keep retail firms from having to get into the haircut business which they do not want to do.

They are not going to give you guys any kind of relief on naked positions, this I know for a fact. You are also still going to need to put up 100% of any pure long premium you buy.
 
Quote from Maverick74:

I have spoken to several people regarding the new REG T rules and I really don't think it will benefit anyone here. Basically what they are going to do is give specific protection for those that are long synthetic calls (long stock/long put). It's actually a smart move as it allows the retail public to insure their portfolios. This will also keep retail firms from having to get into the haircut business which they do not want to do.

They are not going to give you guys any kind of relief on naked positions, this I know for a fact. You are also still going to need to put up 100% of any pure long premium you buy.
More...

Mav,

Do you think we will get similar leverage with this new portfolio-based margin when compared to haircut?
 
Quote from Maverick74:

I have spoken to several people regarding the new REG T rules and I really don't think it will benefit anyone here. Basically what they are going to do is give specific protection for those that are long synthetic calls (long stock/long put). It's actually a smart move as it allows the retail public to insure their portfolios. This will also keep retail firms from having to get into the haircut business which they do not want to do.

They are not going to give you guys any kind of relief on naked positions, this I know for a fact. You are also still going to need to put up 100% of any pure long premium you buy.
More...

I hear that the high water mark will be PDT. It was initially designed to rein-in and regulate prime brokerage activities; as well as repatriate some funds from EUR. They don't think it's possible to limit it to high-dollar accounts as Reg T affected most retail and inst. buy-side trading.
 
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