SPX Credit Spread Trader

[RichardRimes]

not going to that one but you will really enjoy it..we'll be attending the Las Vegas portfolio management one on the 16th

Quote from ryank:

I signed up for the OptionPlanet Beyond the Basics free seminar in Chicago on 1/23. I've never been to a seminar like this, it should be educational and interesting I'm sure. Anybody else going?

ryan

 

[nlslax]

I'm going to one of their $199 all day seminars in Orlando 2/1.
I was impressed with the Beyond the Basics seminar and felt certain I would get my $ worth from this.

Sounds like the one Donna is attending is the next level up.

 

[Synaptic]

Be careful when you're looking at your Order Status as it might show .10 / .50 but in fact it's really (negative) .10 / .50 .... you'll only see it if you attempt to modify the trade and see the NBBO on the trade setup screen (OptionsXpress).

Quote from ryank:

I knew my chances of getting filled were slim to none because the quotes were the same or better than the next higher strikes from time to time. I guess a retail trader like me can't play the arbitrage (kinda sorta) game like the big boys.

ryan

 

[WinDiff]

optioncoach, when you simulate viability of any of your option strategies, using computers, do you rely on cash or futures S&P data?

In case one has to use futures data, what is a good way to approximate volatility on back adjusted contracts? Please note that I intend using this volatility in option pricing models.

WinDiff

 

[ryank]

Quote from Synaptic:

Be careful when you're looking at your Order Status as it might show .10 / .50 but in fact it's really (negative) .10 / .50 .... you'll only see it if you attempt to modify the trade and see the NBBO on the trade setup screen (OptionsXpress).

I don't like how OX shows one b/a on one screen and another on the confirmation screen. You are right though, I was only looking at the first screen when I was comparing my order vs other spreads.

ryan

 

[El OchoCinco]

Since I am selling spreads on the SPX, I use SPX data to test or simulate.

Quote from WinDiff:

optioncoach, when you simulate viability of any of your option strategies, using computers, do you rely on cash or futures S&P data?

In case one has to use futures data, what is a good way to approximate volatility on back adjusted contracts? Please note that I intend using this volatility in option pricing models.

WinDiff

 

[Drofman]

Just for the record Options Xpress refunded the commissions on the partial fill. I was warned that this can happen in the future as there is no way to avoid partial fills. Also the commission policy is to combine all single day fills into single order. There will be a separate charge for each day there is a partial or full fill. This seems to add an additional complication to closing out early e.g. closing for a nickel to clear up margins.

Quote from Drofman:

Has anyone had experience with partial fills with Options Xpress? I have order to close 1205/1195 put spread for .05 and got 1 of 10 partial fill. Since initial credit was .50 this will mean $45 net income with a commission of $29. I know that I could have used the option for "full fill only" but did not even think about it until now. Any way after the fact to call someone to encourage completing the full fill.
What do all/some of you do with respect to "partial fills".
Thanks, Jack

 

[El OchoCinco]

Yeah that negative number in the bid sucks when looking at the order status screen because it does not show up as negative unless you specifically look at the legs or the order screen.

Quote from ryank:

I don't like how OX shows one b/a on one screen and another on the confirmation screen. You are right though, I was only looking at the first screen when I was comparing my order vs other spreads.

ryan

 

[El OchoCinco]

OX does have All or none orders which would prevent partial fills on the spread orders.

Quote from Drofman:

Just for the record Options Xpress refunded the commissions on the partial fill. I was warned that this can happen in the future as there is no way to avoid partial fills. Also the commission policy is to combine all single day fills into single order. There will be a separate charge for each day there is a partial or full fill. This seems to add an additional complication to closing out early e.g. closing for a nickel to clear up margins.

 

[WinDiff]

Quote from optioncoach:

Since I am selling spreads on the SPX, I use SPX data to test or simulate.

Thanks

Wrt options on futures, eg. ED, how would you go about simulating using back-adjusted contracts and in particular how would you estimate sigma?