SPX Credit Spread Trader

FYI.

Just check with TOS that they will start in April the new margin rule (portfolio-based margin similar to that of haircut).

We might want to devise strategies to make advantage of the leveraging but in the same time avoid the temptation of over-leveraging.
 
Quote from piccon:

You are exactly right. That will be my next step. It's to trade ITM, CTM only at directional bias basis and close afyter two or three days. I did that last month creating 30 ITM Calls but 15 CTM PUT and then close 15 Calls when profit was 50% and then leave the 15 Iron Condor till the end. I can live with both situations.
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piccon,

I hope you don't mind we are using your trades as a case study. We are here to learn. If you feel my message too irritating, please let me know and I'll stop.

It seems that your profit of CTM swings too much. I learned from a portfolio management class that the goal of a portfolio manager is to maximize return while minimize the risk. Mathematically it means to maximize the expected return while minimize the standard deviation (I might not agree with this statement, but it is widely accepted).

While you have a very good return, your standard deviation is too big IMHO ( I am using your daily return as a measure ).

I hope through our discussion we will become a better trader.

[BAD] CBOT is currently down. We are having a liquidity risk.

:p
 
You remeber I told you I use the CTM ITM mostly as a cover for my OTM. If I get money from the cTM spreads, fine; as long as I can make money in my OTM, I am happy. 8K is my goal a month; anything above it is a surplus. My goal is to get enough to start when I get in the CTM and then later (close to expiration convert it into BF) and then wait for last day to close or wait for SET depend how far out I am from the money; I know If I have to lose on the CTM, my loss will always be minimum.

I am still experimenting and I will adjust as necessary


Quote from yip1997:

piccon,

I hope you don't mind we are using your trades as a case study. We are here to learn. If you feel my message too irritating, please let me know and I'll stop.

It seems that your profit of CTM swings too much. I learned from a portfolio management class that the goal of a portfolio manager is to maximize return while minimize the risk. Mathematically it means to maximize the expected return while minimize the standard deviation (I might not agree with this statement, but it is widely accepted).

While you have a very good return, your standard deviation is too big IMHO ( I am using your daily return as a measure ).

I hope through our discussion we will become a better trader.

[BAD] CBOT is currently down. We are having a liquidity risk.

:p
More...
 
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