SPX Credit Spread Trader

atticus · Apr 13, 2007

Quote from jbesr1230:

A broker is trying to sell me on using ACE Investment Strategists LLC/Yu/De Chang. Their program is to do strangles on the S&P500 index future. Among the many fees, Iâm being told the exchange has a $55.00 per contract charge. This doesnât sound right to me. But since I donât anything about futures is this accurate? If it is accurate why is it so much higher than what option commissions are? Anyone heard of ACE?

Thanks

It's true, $55 per RT. You can imagine the incentive to push his program. He operates out of Maryland/DC and South Florida. Guy has a history of slaps from the CFTC. I believe he got hit with a 30% DD not too long ago. 150mm AUM.

If its not already obvious -- avoid like the plague. His primary trade is to sell 100-point OTM puts on the big CME SP contract.

Cache Landing · Apr 13, 2007

Quote from atticus:

It's true, $55 per RT. You can imagine the incentive to push his program. He operates out of Maryland/DC and South Florida. Guy has a history of slaps from the CFTC. I believe he got hit with a 30% DD not too long ago. 150mm AUM.

If its not already obvious -- avoid like the plague. His primary trade is to sell 100-point OTM puts on the big CME SP contract.

Ahh C'mon that doesn't sound too bad. He's just doing "completely safe" covered calls like a great many other fund managers out there.

:eek:

atticus · Apr 13, 2007

Quote from risk1:

Interesting. Any corroboration, atticus, other than IB's IPO prospectus?

I haven't seen their prospectus. My business partner's brother in law is an IB VP. They do better than 50% on their capital.

risk1 · Apr 13, 2007

Quote from atticus:

I haven't seen their prospectus. My business partner's brother in law is an IB VP. They do better than 50% on their capital.

Thanks, atticus.

Your comment motivates me to read thru IB's prospectus this weekend.

El OchoCinco · Apr 13, 2007

I am already waiting for my cut of $50 million I helped a Nigerian queen help get out of Europe..

Quote from jbesr1230:

Thanks Coach, (RE: ACE Investment Strategists LLC/Yu/De Chang)

Iâm asking because Iâm looking for good investment opportunities because I have :

IMMEDIATE INHERITANCE PAYMENT -- inheritance payment is US7.5 (Seven million Five hundred thousand united states dollars) the Minister of finance including the board of directors of United Nations here in London, England to see to the release of long term debt owed to many foreigners around the globe who have been denied of their payments.

Gee, and I always thought the United Nations was headquartered in NY. Never was much good at geography or world politics.

Anyone who wants 1/2 the amount I receive, just send me Â¼ of the Seven million Five hundred thousand united states dollars now.

Prevail · Apr 16, 2007

bingo. his performance has dropped as the strategy is non dynamic to iv levels.

Quote from atticus:

It's true, $55 per RT. You can imagine the incentive to push his program. He operates out of Maryland/DC and South Florida. Guy has a history of slaps from the CFTC. I believe he got hit with a 30% DD not too long ago. 150mm AUM.

If its not already obvious -- avoid like the plague. His primary trade is to sell 100-point OTM puts on the big CME SP contract.

nkhoi · Apr 17, 2007

Quote from jbesr1230:

A broker is trying to sell me on using ACE Investment Strategists LLC/Yu/De Chang. Their program is to do strangles on the S&P500 index future. Among the many fees, Iâm being told the exchange has a $55.00 per contract charge. This doesnât sound right to me. But since I donât anything about futures is this accurate? If it is accurate why is it so much higher than what option commissions are? Anyone heard of ACE?

Thanks

look like he offer you a discount I paid $100 per trade. I quitted when my account show 80% DD

ThunderChicken · Apr 17, 2007

where can i trade exotic options (Binaries) like knock out options, knock in options, one touch barrier option,SINGLE PAYMENT OPTIONS TRADING(SPOT) etc.

http://www.investopedia.com/terms/s/SPOT.asp

My strategy calls for trading option spreads on an index on which exotic options are also traded.

Any help is much appreciated.

atticus · Apr 17, 2007

Quote from ThunderChicken:

where can i trade exotic options (Binaries) like knock out options, knock in options, one touch barrier option,SINGLE PAYMENT OPTIONS TRADING(SPOT) etc.

http://www.investopedia.com/terms/s/SPOT.asp

My strategy calls for trading option spreads on an index on which exotic options are also traded.

Any help is much appreciated.

UBS' FX Option Trader is available to foreign individuals and corps with $500k or more. Spot markets are fairly wide, but their exotics are tight.

SPOTs are simply the former-REFCO's lingo for barrier-exotics. Check fxcm.com for the product on fx.

www.clickoptions.com is the retail-exotic division of the largest French ibank, SocGen. You must be a UK resident. Barriers and digitals on Euro equities.

www.betonmarkets.com offers no/touch and doubles on fx and index markets. They're owned by a UK billionaire.

Oanda.com offers barriers on 12 fx pairs, and the best markets outside of the institutional space

El OchoCinco · Apr 17, 2007

You will have to trade through an investment bank like JP Morgan or Sachs, there is no standardized market in an exchange for exotics like regular index options.

Quote from ThunderChicken:

where can i trade exotic options (Binaries) like knock out options, knock in options, one touch barrier option,SINGLE PAYMENT OPTIONS TRADING(SPOT) etc.

http://www.investopedia.com/terms/s/SPOT.asp

My strategy calls for trading option spreads on an index on which exotic options are also traded.

Any help is much appreciated.

SPX Credit Spread Trader

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