SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
I am trading eoe (amsterdam exch.) options and often use a similar strategy as optioncoach. However, I often just write "out of the money" instead of doing "credit spreads" Especially on the call side I do not like to use them. Something I don't like about the ES- and YM-options are the spreads.....I recommend that you start to trade eoe regarding this. I just have a question optioncoach, and that is if you have also an exit-strategy ? With this kind of position I would be overwhelmed by emotions and that is not in favour of taking good decisions...
However, it is interesting how this will work out, and hope that everything will be fine at expiration !
Jeroen
However, it is interesting how this will work out, and hope that everything will be fine at expiration !
Jeroen
I worked really hard at reducing the effect of emotions on trading. I wish I could remove it completely but it will never happen. It is experience that makes you not fall in love with profits or depressed at losses. keeping a long-term frame of mind will also keep you focused on the long-term goals and not let your emotions ride with every monthly up and down.
I do not have every $ of my capital tied up here nor would a loss wipe me out. THis risk management approach allows me to be less emotional towards these positions. My favorite Godfather quote is, more or less, "It's nothing personal, just business" and I even quoted that in my book. This is a business for me and I treat it as such and up and down are a part of the business. Risk managment is what keeps you in the game for the long run and avoids getting overly emotional on a month to month basis.
I know this is easier said than done and it only comes with experience. i still get adrenaline rushes on profits and anxiety attacks on moves like today, but I try and focus and remember what got me here and I usually let those emotions run their course and get my head back in it. Money is major but emotions are your worst enemy.
Right now, the loss to close is within my comfort level so I am not rushing to close. My goal now is to hold towards 4PM and see how we close to make my decision to get out or hold overnight. The spike about 10 minutes ago faded somewhat again so it is just reinforcing my approach to stay to at least 3:30 PM.
I hope to post my update but will be leaving town this afternoon/evening so if not today then tomorrow morning.
Phil
I do not have every $ of my capital tied up here nor would a loss wipe me out. THis risk management approach allows me to be less emotional towards these positions. My favorite Godfather quote is, more or less, "It's nothing personal, just business" and I even quoted that in my book. This is a business for me and I treat it as such and up and down are a part of the business. Risk managment is what keeps you in the game for the long run and avoids getting overly emotional on a month to month basis.
I know this is easier said than done and it only comes with experience. i still get adrenaline rushes on profits and anxiety attacks on moves like today, but I try and focus and remember what got me here and I usually let those emotions run their course and get my head back in it. Money is major but emotions are your worst enemy.
Right now, the loss to close is within my comfort level so I am not rushing to close. My goal now is to hold towards 4PM and see how we close to make my decision to get out or hold overnight. The spike about 10 minutes ago faded somewhat again so it is just reinforcing my approach to stay to at least 3:30 PM.
I hope to post my update but will be leaving town this afternoon/evening so if not today then tomorrow morning.
Phil
Not getting emotional is a tough-proposition when short all that bounded-gamma. My issues are simple -- risk/reward and the inability to hedge effectively when the position needs it most.
Kudos for the stones to sell a 15-wide vertical into Monster-risk, and for booking this one. Looks like you're out of the woods. I've never seen a SPX SET > 6 handles.
Kudos for the stones to sell a 15-wide vertical into Monster-risk, and for booking this one. Looks like you're out of the woods. I've never seen a SPX SET > 6 handles.
Pffffffff, I am sweating, even it is not my position.
Such a lot of risk.......
What time the contract is fixed and how it will be settled ?
Eoe contracts is cash settlement, but the underlying of ES is the sept. ES contract. Would like to know that.
(sorry for my English, it is not perfect)
Such a lot of risk.......
What time the contract is fixed and how it will be settled ?
Eoe contracts is cash settlement, but the underlying of ES is the sept. ES contract. Would like to know that.
(sorry for my English, it is not perfect)
SPX settles cash based on tomorrow morning's open price...
I think it actually settles after ALL SP stocks open, so it can be a bit off from the SPX Friday Open #s.
Options are a pain in the a$$ if you have positions open at expiration...
The exercise-settlement value, SET, is calculated using the opening (first) reported sales price in the primary market of each component stock on the last business day (usually a Friday) before the expiration date. If a stock in the index does not open on the day on which the exercise & settlement value is determined, the last reported sales price in the primary market will be used in calculating the exercise-settlement value. The exercise-settlement amount is equal to the difference between the exercise- settlement value, SET, and the exercise price of the option, multiplied by $100. Exercise will result in delivery of cash on the business day following expiration.
I agree regarding a position like this. This is an "at the money option" with still a lot of "expection value" Expensive to close....Difficult to take a decision to close. May be I should close half of the position......
There were a lot of MM and buy-sides [prop-options and hedge funds] trading the SET in NDX very effectively on short gamma a few years ago. Average NDX atm straddles were going into the close of LTD at 15 handles or better. Most NDX SETs were within 4-8 handles of the LTC closing print.
The kind of "pain in the ass" that made millions for Susq amonth others
The kind of "pain in the ass" that made millions for Susq amonth others