SPX Credit Spread Trader

[jj90]

The problem is, what IS a considerable distance OTM? One can never say they are at a safe distance because you will never know until after the fact. What if the black swan to the upside hits and the SPX settlement is 100 points higher than the close? True, it's not very realistic, but given where RUT closed on Thurs, 850 was pretty OTM . The only way to stop it is to close out.

But there's obviously a huge difference in the decision process to close a 0.05 cent option vs a 1.00 option. But that's what it all comes down to, a decision. If I was short the spread from a credit of 3.00, it would have been simple. Sounds like many here including me weren't.

 

[dagnyt]

Quote from yip1997:


I tried not to make any unnecessary adjustment in order not to lose extra edge to MMs.

Forget the MMs.

Your goal is to make money. Period. The bid/ask spread is part of the cost to play the game.

Mark

 

[dagnyt]

Hello all,

I'm interested in buying my first notebook computer. I want it just for my trading, so it must be a fast machine.

Any suggestions:

Vista or Windows XP?

I see no need for a DVD drive. Is that a mistake?

Minimum hard drive capacity?

What are some 'must have' features vs. those that can be eliminated?

Thanks

Mark

 

[damon_achey]

Quote from dagnyt:

Hello all,

I'm interested in buying my first notebook computer. I want it just for my trading, so it must be a fast machine.

Any suggestions:

Vista or Windows XP?

I see no need for a DVD drive. Is that a mistake?

Minimum hard drive capacity?

What are some 'must have' features vs. those that can be eliminated?

Thanks

Mark

No offence because I've liked many of your posts and I know the thread has strayed now and then, but this is quite a bit off topic. There is a hardware forum here -> http://www.elitetrader.com/vb/forumdisplay.php?s=&forumid=4

 

[ThunderChicken]

if i do the trading in my IRA, i dont have to pay tax even on datrading until age 60?.

 

[segv]

Quote from dagnyt:

Hello all,

I'm interested in buying my first notebook computer. I want it just for my trading, so it must be a fast machine.

Any suggestions:

Vista or Windows XP?

I see no need for a DVD drive. Is that a mistake?

Minimum hard drive capacity?

What are some 'must have' features vs. those that can be eliminated?

Thanks

Mark

Mark,

I recommend the Macbook Pro 15 or 17 with maximum RAM. If you are concerned about switching to OS X, you are free to run Windows. IMO, this is the best deal for the price,performance, size tradeoff.

 

[gismeu]

Quote from huh:

......

Or for that matter would a backspread on the call side be effective here even though there's only 3 full trading days today (plus SET could be particularly nasty on Friday similar to the April SET.

[/B]

could someone please explain to me what SET means or is?

many thanks, gis

 

[RichardRimes]

Quote from gismeu:

could someone please explain to me what SET means or is?

many thanks, gis

gis...go to the CBOE...look up index products and you will find good information on each of the products offer like SPX NDX etc

SET = settlement on index products ...because they are cash settled. For the SPX...SET occurs Friday AM...last day of trading is THURS and settlement means the opeaning print of each of the equities that make up the SPX ( S&P 500) it has NOTHING to do with the closing on Thurs of the SPX or the opeaning Friday AM of the SPX..

 

[Prevail]

after observing test trades for some time, i set up our first larger lot size in eom sp pit options. oi is still much lower than i would like to see but i think they are becoming viable. Anyone else trading them and have feedback on fills and exits?

 

[RichardRimes]

Not trading them myself, my understanding was lg momey managers, institutions were trading them more to hedge I think.