I check every day and didn't see anything through Friday...
SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
I check every day and didn't see anything through Friday...
I read more than once than guys at Tos can get SPX filled at Mid price plus a dime
Is the "plus a dime" valid only for a simple option, or also for a spread or a Condor
Or
For a spread she should expect Mid + 2 dimes and for a Condor Mid+ 4 dimes.
Also the mid is always moving so it is quite difficult to know if we have been filled close or far from the mid.
Tks
Is the "plus a dime" valid only for a simple option, or also for a spread or a Condor
Or
For a spread she should expect Mid + 2 dimes and for a Condor Mid+ 4 dimes.
Also the mid is always moving so it is quite difficult to know if we have been filled close or far from the mid.
Tks
Parisd,
A quick stab at these:
It depends how agressive you want to be, how wide the b/a spread is, how wide your spread is, how many lots you're trading, which way the market is moving and...probably a few other factors. Sometimes you can get filled at the mid on a two leg spread. If you don't ask, you don't get....but be prepared to not get filled if you are too greedy.
I guess you're looking for a starting guide and giving up a dime sounds quite generous for a two legged spread but then that might be the best you can get on the SPX if you're trading less than 50 lots and want to get filled before the next ice age
Seriously though, it's not black and white. There isn't a fixed rule saying that ToS can get you x cents off the mid because there are so many variables including the person you speak to and the person in the pit - might just be having a bad day.
Probably best to ask ToS themselves these kind of questions.
Not sure what you mean here. You're using limit orders right?There are numerous ways to know if you have been filled close or far from the mid. Assuming you are a ToS customer and use the desktop platform:
Your spread/position will show a real-time paper P/L (if you choose to display P/L Open) indicating how close it was put on to the mid or more accurately how close it is to the mid RIGHT NOW.
You can also check the exact prices for each leg (click on the relevant row under the P/L column) of the spread and then calculate the price of the spread.
You can look at the filled orders to see the price of the spread that it was filled at and then look at a duplicate of the order to see what the current mid is.
You can look at the options chains montage viewing the series in terms of the relevant spread and also selecting Mark as one of the information layouts to see what the current mid is for that spread.
Etc. etc. Sorry if I missed your point/question.
Happy trading.
Momoney.
A quick stab at these:
It depends how agressive you want to be, how wide the b/a spread is, how wide your spread is, how many lots you're trading, which way the market is moving and...probably a few other factors. Sometimes you can get filled at the mid on a two leg spread. If you don't ask, you don't get....but be prepared to not get filled if you are too greedy.
I guess you're looking for a starting guide and giving up a dime sounds quite generous for a two legged spread but then that might be the best you can get on the SPX if you're trading less than 50 lots and want to get filled before the next ice age
Seriously though, it's not black and white. There isn't a fixed rule saying that ToS can get you x cents off the mid because there are so many variables including the person you speak to and the person in the pit - might just be having a bad day.
Probably best to ask ToS themselves these kind of questions.
Not sure what you mean here. You're using limit orders right?There are numerous ways to know if you have been filled close or far from the mid. Assuming you are a ToS customer and use the desktop platform:
Your spread/position will show a real-time paper P/L (if you choose to display P/L Open) indicating how close it was put on to the mid or more accurately how close it is to the mid RIGHT NOW.
You can also check the exact prices for each leg (click on the relevant row under the P/L column) of the spread and then calculate the price of the spread.
You can look at the filled orders to see the price of the spread that it was filled at and then look at a duplicate of the order to see what the current mid is.
You can look at the options chains montage viewing the series in terms of the relevant spread and also selecting Mark as one of the information layouts to see what the current mid is for that spread.
Etc. etc. Sorry if I missed your point/question.
Happy trading.
Momoney.
momoneythansens-
WHat you say makes a lot of sense. Similar (albeit far less articulate) thoughts had been bubbling in my mind as I've been reading and evaluating this strategy. Personally, i've decided to keep it small, keep far OTM and stick with bear calls (helps me sleep better knowing that a "black swan" won't get me.
That being said, I did some back-testing and if I were to do this every month, I'd end up losing money. So, then you start thinking "well.. what if I adjust when itgets to x...". You end up realzing that its trading and you probably won't come out a ahead without a lot of experiene and without keepinga close eye on your chosen index.
WHat you say makes a lot of sense. Similar (albeit far less articulate) thoughts had been bubbling in my mind as I've been reading and evaluating this strategy. Personally, i've decided to keep it small, keep far OTM and stick with bear calls (helps me sleep better knowing that a "black swan" won't get me.
That being said, I did some back-testing and if I were to do this every month, I'd end up losing money. So, then you start thinking "well.. what if I adjust when itgets to x...". You end up realzing that its trading and you probably won't come out a ahead without a lot of experiene and without keepinga close eye on your chosen index.
Friday am sold 10 1240 calls for $2.5 then sold the weekly 1235 10calls for $1.2
Sat early am I had an epiphany..a sudden clarity and vision where all the study...reading, modeling and trading the past 6 months finally made sense beyond just the intellectual understanding of options theory and greeks...I actually GOT it.
With this new clarity of vision I reallized my mistake in the trade on Fri am. I decided to go with the 1240/1250 Bear call spread with a belief of at least a rest or perhaps a down day on mon or tues. However thought I would try to hedge with the 1235...BUT I should have BOUGHT not SOLD the 1235 weekley since if I'm wrong then that call will go up quite a bit . As it stands I put myself in double jeopardy...if I'm wrong I lose in both and even if I'm right it will not have been a very good trade. The other reason not good is that selling the 1235 weekly with the 1250 long created a calendar thus created another $15000 in BP or margin req. Now I need to find a graceful exit.
I wish I had my epiphany Friday am
Sat early am I had an epiphany..a sudden clarity and vision where all the study...reading, modeling and trading the past 6 months finally made sense beyond just the intellectual understanding of options theory and greeks...I actually GOT it.
With this new clarity of vision I reallized my mistake in the trade on Fri am. I decided to go with the 1240/1250 Bear call spread with a belief of at least a rest or perhaps a down day on mon or tues. However thought I would try to hedge with the 1235...BUT I should have BOUGHT not SOLD the 1235 weekley since if I'm wrong then that call will go up quite a bit . As it stands I put myself in double jeopardy...if I'm wrong I lose in both and even if I'm right it will not have been a very good trade. The other reason not good is that selling the 1235 weekly with the 1250 long created a calendar thus created another $15000 in BP or margin req. Now I need to find a graceful exit.
I wish I had my epiphany Friday am
No kidding, I should start another Journal where people take the opposite direction as soon as I put on a partial hedge lol.
Quote from momoneythansens:
I wish however, for Phil and co. to continue with the hedge insurance strategy as it serves as good an indicator of trend reversal as any other I've seen
I am not sure about ToS getting SPX fills at mid plus a dime. ToS has no power to make the MMs accept prices that are outside their current acceptable prices. ALl ToS can do is quote you the real b/a ask on the floor among the MMS (screen will show a composite I believe) and let you know what price has a good chance of getting filled.
ToS cannot get you any price, they can only call down to the floor and help you get the best price that is currently out there with the b/a. I do not want their to be a misunderstanding.
Phil
ToS cannot get you any price, they can only call down to the floor and help you get the best price that is currently out there with the b/a. I do not want their to be a misunderstanding.
Phil
On 10/12/05 I posted a message here that I was joining the bear camp and to let the rally begin. If you look at a short term chart, I just about picked the bottom and now we have run up to 1220 from 1180. Apparently whenever Phil puts on a hedge or I become bullish/bearish everyone should go the other way lol!
ryan
Quote from zman7854:
Quote from parisd:
...For a spread she should expect Mid + 2 dimes and for a Condor Mid+ 4 dimes.
Tks
Don't know what you've been smoking bud but pass some over
Ok, lets use quarters this time
Assuming I get filled long SPX 1240 at mid plus 0.25$ and separately I get filled short SPX 1230 at mid plus 0.25$ (equivalent cost of the vertical spread + 0,50)
Now instead of the 2 separate orders above I sell a vertical spread 1230/1240, can I expect to be filled at the spread mid + 0.25 or at the spread mid + 0,50$