SPX Credit Spread Trader

[momoneythansens]

Quote from riskarb:

Anypackage with a VaR module.

LOL. For some reason Yip is on my ignore list, so I'll respond via your post.

Who want's to know their risk?

I follow a proprietary risk-management approach known as HIS (head-in-sand).

HIS files are calculated daily by the exchanges and sent out to subscribers.

The data contained therein, normally has critical risk-management information such as:

"There is no spoon"

 

[yip1997]

Quote from momoneythansens:

LOL. For some reason Yip is on my ignore list, so I'll respond via your post.

Please release me from your ignore list. I need your response to my silly question.

 

[yip1997]

Quote from momoneythansens:

It might be a bit of a learning curve. The main advantage of Hoadley's stuff IMO is if you were planning to [EDIT: build your own spreadsheets and larger analysis in Excel or leverage some of the other features such as volatility forecasting etc.] If you weren't planning to do that then perhaps look elsewhere.

There is a trial the product I believe so you could try that out first.

For some reasons, the trial version didn't work with my excel program when I tried it 3 months ago (Perhaps I have too many add-ons ).

 

[Heatheranderson]

I finally closed my SPX 1365/1375 bear call spread. I had a wonderful oppertunity yesterday to close it for $1.70 when the market fell to 1357. But did i close it?. No

This greed thingy got in the way again.After going through the emotional rollercoaster today when SPX went to 1372 at one point, i finally closed it at 1364 for $3.5.

I must rethink my whole trading style and maybe switch strategies.any suggestions?.

 

[El OchoCinco]

The strategy did not fail you, your risk management approach did. You hesitated in acting when you needed to to limit your risk. THis market was on a bull tear and you let the market push past the 10 and 5 point fences without taking any action.

My suggestion is you think long and hard about where your risk management failed you, not the strategy.

It is tough love but a good musician does not blame the instrument nor does a pro golfer blame the club. The power was entirely within you to cut ealrier but the plan was not followed. Use it as a learning tool for the next time.

Quote from Heatheranderson:

I finally closed my SPX 1365/1375 bear call spread. I had a wonderful oppertunity yesterday to close it for $1.70 when the market fell to 1357. But did i close it?. No

This greed thingy got in the way again.After going through the emotional rollercoaster today when SPX went to 1372 at one point, i finally closed it at 1364 for $3.5.

I must rethink my whole trading style and maybe switch strategies.any suggestions?.

 

[rdemyan]

Mo:

I briefly reviewed the info on Hoadley's website, but didn't see anything about the optionsXpress data feed. I have an account with optionsXpress so does that mean I get a free data feed. Also, I would assume that the Excel add-in is where one would set up the feed to Hoadley's add in. Do you also have to do something within optionsXpress to activate the data feed.

Thanks for any additional info.

Quote from momoneythansens:

Excel aficionado's can't go wrong with Hoadley's Tools $67 + optionsXpress data feed for live option quotes.

I have found the add-in can confilict with other add-ins though but you're not likely to encounter that.

 

[El OchoCinco]

At least I still can do something right this month lol. Notice any hint as to why the market has not pushed past 1275....


Well if you are new here I will give you the answer...

BECAUSE I HAD A PARTIAL HEDGE ON...

Coach Phil's Partial Hedge Contrarian Indicator is still 100% after 1 year...

Quote from optioncoach:



SPX CREDIT SPREAD POSITION

SOLD 400 OCT SPX 1385/1390 Put Spreads @ $0.30

Net Credit = $12,000

Max Risk = $188,000

Return = 6.4%


Partial hedge given the shorter distance OTM:

Long 100 OCT SPY 138 Calls @ $0.20 or $2,000


COMBINED NET CREDIT = $10,000

Combined Net Return = 5.26%

 

[dagnyt]

Quote from Heatheranderson:



I must rethink my whole trading style and maybe switch strategies.any suggestions?.

I agree with Phil and add this note. With your strategy (and many others), it's easy to make money. You will win MOST of the time. the trick - and it's the only trick you need to know - is how to limit losses.

Sure you will cover at a loss, only to see the market turn around. Who cares? Don't let any loss become too large. That's the secret.

Mark

 

[rdemyan]

Wow, Heather. You must have a cast iron stomach to have been able to last up to SPX 1372. What did it cost to get out that point $7+?

If misery loves company, then I'll chime in and say that I too took a substantial loss this month and am also rethinking my option trading strategy. In my case, work got in the way and because I knew in advance I wouldn't be in a position to adjust any positions, I was forced to offset sooner than I would have had I been able to monitor my positions. Naturally, that offset occurred at the wrong time because the SPX was down the next day, but, at the time, I had no choice.

EDIT: I posted a similar question to Mo regarding other strategies. He responded regarding strangle/straddle swaps (see page 278).

Maybe I should quit working, because it's getting in the way

Quote from Heatheranderson:

I finally closed my SPX 1365/1375 bear call spread. I had a wonderful oppertunity yesterday to close it for $1.70 when the market fell to 1357. But did i close it?. No

This greed thingy got in the way again.After going through the emotional rollercoaster today when SPX went to 1372 at one point, i finally closed it at 1364 for $3.5.

I must rethink my whole trading style and maybe switch strategies.any suggestions?.

 

[rdemyan]

Mark:

Didn't the diagonals fare better than an equivalent (or similar) vertical in this bullish nightmare?

Quote from dagnyt:

I agree with Phil and add this note. With your strategy (and many others), it's easy to make money. You will win MOST of the time. the trick - and it's the only trick you need to know - is how to limit losses.

Sure you will cover at a loss, only to see the market turn around. Who cares? Don't let any loss become too large. That's the secret.

Mark