SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
I did not call yet. I went on to Live Chat with them.
They reduced the commission to $3.00
for a contract worth $5.00
Further, told me that this was just a favor to me and only a one time favor.
Further.... that a partial-fill could happen again and that they do not have an (All Or None) option yet.
I thanked them... in disappointment.
Also ... they did not respond to my email inquiry about it at all.
IB is looking better and better for ES spreads.
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They reduced the commission to $3.00
for a contract worth $5.00
Further, told me that this was just a favor to me and only a one time favor.
Further.... that a partial-fill could happen again and that they do not have an (All Or None) option yet.
I thanked them... in disappointment.
Also ... they did not respond to my email inquiry about it at all.
IB is looking better and better for ES spreads.
-----------------------
I could use some advise on how best to profit on SPX motion from what I anticipate to be a strongly trending bull market in a what I project to be declining VIX environment with occasional spikes/chop down.
As a front month SPX credit spread trader I am now looking for opportunity to get into Jan 2007 expiration positions. VIX has been low so its a bit challenging to get legged in with reasonable premium at strikes far enough away from anticipated real market volatility. I have been very successful at getting in on the down side action though. I expect VIX to trend up next week as we get into Dec expiration and to have opportunity then.
My problem with playing a full IC spread in this market though is the continued bullish trend up. According to my analysis conditions remain favorable for moderate to strong upward trending. For example money market funds hold about $2.3 trillion and will probably get more as end of year positions liquidate to recalibrate portfolios and take end of year tax losses. Relative to the Wilshire 5000 value (about $13 trillion) this still represents a lot of buying power. Given the huge global liquidity from excess global savings rates we have a massive global liquidity problem. With the dollar being so devalued on the currency exchanges US equities are now a double bargain. Folks I think conditions are favorable for an explosive up swing in SPX through at least 1-2 quarters of 2007 and probably beyond.
Herein is the rub with an IC strategy in a sharply trending market - its suicidal to the upside right now in my opinion. So I think I am going to focus on forming only the PUT side positions and doing something else to take advantage of the up trend. It is just taking too much effort to get in on the upside at favorable premium for the credit spreads and VIX will continue to trend down on upward trends of SPX.
Thoughts on how to best profit to the SPX upside motion if my TA and macro views are correct? My objective is to derive fairly consistent income each calendar month in much the same way I have been enjoying with full IC in the higher VIX past. I was thinking I could double up or increase # of contracts on the Bull Put spreads and with low VIX take cheap lotto ticket calls to profit by upside motion; or take limited profits and limited risk with bull call debit spreads.
TS
As a front month SPX credit spread trader I am now looking for opportunity to get into Jan 2007 expiration positions. VIX has been low so its a bit challenging to get legged in with reasonable premium at strikes far enough away from anticipated real market volatility. I have been very successful at getting in on the down side action though. I expect VIX to trend up next week as we get into Dec expiration and to have opportunity then.
My problem with playing a full IC spread in this market though is the continued bullish trend up. According to my analysis conditions remain favorable for moderate to strong upward trending. For example money market funds hold about $2.3 trillion and will probably get more as end of year positions liquidate to recalibrate portfolios and take end of year tax losses. Relative to the Wilshire 5000 value (about $13 trillion) this still represents a lot of buying power. Given the huge global liquidity from excess global savings rates we have a massive global liquidity problem. With the dollar being so devalued on the currency exchanges US equities are now a double bargain. Folks I think conditions are favorable for an explosive up swing in SPX through at least 1-2 quarters of 2007 and probably beyond.
Herein is the rub with an IC strategy in a sharply trending market - its suicidal to the upside right now in my opinion. So I think I am going to focus on forming only the PUT side positions and doing something else to take advantage of the up trend. It is just taking too much effort to get in on the upside at favorable premium for the credit spreads and VIX will continue to trend down on upward trends of SPX.
Thoughts on how to best profit to the SPX upside motion if my TA and macro views are correct? My objective is to derive fairly consistent income each calendar month in much the same way I have been enjoying with full IC in the higher VIX past. I was thinking I could double up or increase # of contracts on the Bull Put spreads and with low VIX take cheap lotto ticket calls to profit by upside motion; or take limited profits and limited risk with bull call debit spreads.
TS