SPX Credit Spread Trader

Quote from optioncoach:

The underlying is not the same. Right now the NOV/DEC trade off the DEC future but the JAN cycle trades off the MAR future. As I found out it messes up the striaghtforward calculation.

I put one one recently and simply pushed the DEC EW out 15 points further OTM to hopefully offset the jump in premium from DEC to MAR but it makes modelling that much more difficult. I think it is easier to do when all 3 months are priced off the same underlying future.
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Just adjust price points appropriately. Yea, will be easier Jan/Feb/Mar. Again, point is that objections have used Ret T as reason. Reg T does not apply to futures&futures options.
 
What a huge thread - lots of really really good stuff. Just a quick question if I may. Are you guys plotting risk profiles with the time flies and double calendars with software? If not, plotting the curvature looks tough, how are you doing it?

Kind regards,
MK

P.S. Coach, I think you used to be on optionetics forum maybe 3-4 years ago? I seem to remember a guy just like you.
 
Quote from MidKnight:

What a huge thread - lots of really really good stuff. Just a quick question if I may. Are you guys plotting risk profiles with the time flies and double calendars with software? If not, plotting the curvature looks tough, how are you doing it?

Kind regards,
MK

P.S. Coach, I think you used to be on optionetics forum maybe 3-4 years ago? I seem to remember a guy just like you.
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Coach gets around, if you know what I mean....:p
 
You can graph these positions if you use Thinkorswim which has free analytical software to test positions. If you do not use ToS, you can buy analytical software such as Hoadley or OptionVue to graph and stress test these.

Yes I was on the Optionetics boards a lot. They were pretty good and focused on option trading mainly and not on Optionetics. That changed slowly over time andgot tired of all the Optionetics questions and people with no background in trading at all spending $3k lol. My name was optioncoach there too.

:)

Quote from MidKnight:

What a huge thread - lots of really really good stuff. Just a quick question if I may. Are you guys plotting risk profiles with the time flies and double calendars with software? If not, plotting the curvature looks tough, how are you doing it?

Kind regards,
MK

P.S. Coach, I think you used to be on optionetics forum maybe 3-4 years ago? I seem to remember a guy just like you.
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Thanks for the reply coach. I didn't remember your handle on the board, just remembered your name Phil and that you where writing a book.

I don't live in the USA and focus on trading futures in asia and europe. Would like to pick up my old options knowledge and apply it to future options on the products I'm trading. I've looked around in the past and found it difficult to find products/services that give future options data, let along future options data for europe or asia. Therein lies part of the problem...coupled with the price tag of some of these packages LOL :)

Thanks again, I'm enjoying the content here.

Kind regards,
MK
 
Open an IB account. All your answers will be answered.

www.interactivebrokers.com




Quote from MidKnight:

Thanks for the reply coach. I didn't remember your handle on the board, just remembered your name Phil and that you where writing a book.

I don't live in the USA and focus on trading futures in asia and europe. Would like to pick up my old options knowledge and apply it to future options on the products I'm trading. I've looked around in the past and found it difficult to find products/services that give future options data, let along future options data for europe or asia. Therein lies part of the problem...coupled with the price tag of some of these packages LOL :)

Thanks again, I'm enjoying the content here.

Kind regards,
MK
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Quote from dagnyt:

Boy am I thrilled to see this column by a resepected writer. I loathe Optionetics. They give a bad name to the entire options education industry. I just hope enough people see this column so that it does some good.

Mark
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I went to one of their 2 hour sales pitch seminars a few years ago. Funny, they were using a similar Walmart example back then too (no mention of Jim Cramer but they did say Buffett sold tons of covered calls on stocks he owns).
 
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