SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Agreed! Save your $$ Cody, all that you mentioned in your list can be had for free on the internet.
Here's a few free links you might find useful:
http://www.optionsrez.com/
http://www.hoadley.net/options/calculators.htm
http://optionstrategist.com/free/index.html
http://www.ivolatility.com/options.j?ticker=spx&R=0&top_lookup__is__sent=1
I think Coach Phil would agree.
Jeff.
Cody:
As was mentioned by others, a lot of what you are looking for is offered by OptionsXpress and ThinkorSwim for free, most of those things by ToS so no need to pay for it
. That is why I tell people that if you have a good options broker, most of the tools you need are already free. If not then switch brokers.
Phil
As was mentioned by others, a lot of what you are looking for is offered by OptionsXpress and ThinkorSwim for free, most of those things by ToS so no need to pay for it
. That is why I tell people that if you have a good options broker, most of the tools you need are already free. If not then switch brokers.Phil
As I said I do not have a fixed point trigger for adding SPY hedges. It is based on my analysis of the markets and potential for adverse moves to occur. Best advice I can give you is to forget about any SPY hedges for now as you learn the strategy and just stick with adjustments if needed. You can still have great returns. The SPY hedges are just the way I manage my risk and positions and is not necessarily the way other people need to do it. Let the strategy becomes your own. You need to insert your own instincts and experience into the position so it becomes more natural. I do not think twice about these things anymore because I have been doing it for so long and that is the stage you want to get to so you can remove your emotions and trade mechanically in a way.
Trading is not about applying strict rules to positions, it is about applying your own experience, analysis and skill to a general framework.
Phil
Trading is not about applying strict rules to positions, it is about applying your own experience, analysis and skill to a general framework.
Phil
Hi Coach,
I often give into the temptation of turning credit spreads into iron condors because there is no additional margin requirement and you can often double your return.
What kind of things do you look for and require before pulling the trigger and turning a bull put spread (or bear call spread) into an iron condor?
Also, what are the red flags that tell you NOT to enter a position on the other side of the underlying.
Thanks for all your help,
modegolf
I often give into the temptation of turning credit spreads into iron condors because there is no additional margin requirement and you can often double your return.
What kind of things do you look for and require before pulling the trigger and turning a bull put spread (or bear call spread) into an iron condor?
Also, what are the red flags that tell you NOT to enter a position on the other side of the underlying.
Thanks for all your help,
modegolf
My decision to roll into an Iron Condor is the same process as I undertake to enter into a credit spread. I look at the index, the strikes and the premiums to determine if I can get in a strike that is deep enough OTM based on my analysis of where the index is likely to move, and premiums nice enough to add to my overall return. If I cannot find any premiums at strikes I am comfortble with, I pass on rollling into the IC.
Phil
Phil
Time to post AUGUST RESULTS! July was a great month (10% return on total margin!) and I would not expect to be able to do that every single month. But AUG was still good with about a 3 -4% return estimated on margin.
Market entered AUG near its top and was down maybe 2% for the month which is still a nice tight range. Below is my spreadsheet for AUG with P/L. Not a lot of closed trades in AUG but I loaded up a lot for SEPT so should see higher returns and more activity.
One note is that I was testing something with legging out of a spread and I closed the short call side of a spread for a profit and re-sold the calls again to get back into the spread. So there is one lone trade at the bottom which is not a spread. The legged back into spread is for SEPT and it will show up on the SEPT P/L statement. What I was trying to do did not work and I still recommend never legging in and out of spreads. Not worth it at all.
AUGUST Profit Sheet:
Market entered AUG near its top and was down maybe 2% for the month which is still a nice tight range. Below is my spreadsheet for AUG with P/L. Not a lot of closed trades in AUG but I loaded up a lot for SEPT so should see higher returns and more activity.
One note is that I was testing something with legging out of a spread and I closed the short call side of a spread for a profit and re-sold the calls again to get back into the spread. So there is one lone trade at the bottom which is not a spread. The legged back into spread is for SEPT and it will show up on the SEPT P/L statement. What I was trying to do did not work and I still recommend never legging in and out of spreads. Not worth it at all.
AUGUST Profit Sheet:
I have a bear call spread on SPX at 1250/1260. With the strong move up today we are very close to my "Warning" level of 1235, if we continue on the upward direction tomorrow there is no doubt we will hit that level. Right now my spread is showing a good loss but SPX showed resistance around 1245 before. With 9 more days to go I have to weigh out closing at a loss, buying SPY calls as a hedge or sitting tight.
Decisions, decisions, decisions...
ryan
Decisions, decisions, decisions...
ryan