SPX Credit Spread Trader

Many thanks

I think I will try to come up with some hard and fast rules ala optioncoach... Additionally by constantly refitting the underlying to capture both the volatility and the trend is crucial I gather.

Still struggling with the idea of how to measure execution risk on limit orders and in particular on b/a splitting technique, which seem a big factor when it comes to profitability.

Regards,
WinDiff




Quote from optioncoach:

Actually I think the futures have more volatility than the cash values. The traders on the floor can cause wilder swings than the actual cash index would move so the cash vol might underestimate slightly. For example the S&P high low has a

...
OK long winded here.. sorry..
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The only way to gauge the splitting of the bid/asks on limit orders is to do it lol. We all here have had different experiences doing it on the same day with the same strikes. SPX is of course the worst due to the spread.

Quote from WinDiff:



Still struggling with the idea of how to measure execution risk on limit orders and in particular on b/a splitting technique, which seem a big factor when it comes to profitability.

Regards,
WinDiff
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Everyone, I was typing a nice long post to summarize the my SPX credit spread strategy and the general rules and was almost done when my arm pressed my pen against the ESC button and apparently that cause your post that you are typing to be @#$%-ing ERASED! LOL. Well it took so long to get it all done and was so pissed at my hitting the ESC key that I will tackle it again tomorrow and will leave my arm at home so it cannot do that again.

:mad:
 
Quote from optioncoach:

Everyone, I was typing a nice long post to summarize the my SPX credit spread strategy and the general rules and was almost done when my arm pressed my pen against the ESC button and apparently that cause your post that you are typing to be @#$%-ing ERASED! LOL. Well it took so long to get it all done and was so pissed at my hitting the ESC key that I will tackle it again tomorrow and will leave my arm at home so it cannot do that again.

:mad:
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That's happened to me. When writing an email. If your arm does misbehave again and hits the ESC button. You can hit ALT+Z with the other arm, to retrieve the message.

Give it a shot and see what happens. :)
 
Ctrl-Z = undo in my crazy world. I'm not here.

Quote from daytrader85:

That's happened to me. When writing an email. If your arm does misbehave again and hits the ESC button. You can hit ALT+Z with the other arm, to retrieve the message.

Give it a shot and see what happens. :)
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well, I drummed up some capital today by exciting my RMBS trade..what a succky stock. I no that no one will shed any tears for me but I'm sold out at 15, couldn't stand the pain. If husband knew..."Donna...we could have MADE $30,000" yea yea yea...didn't:eek:

ANYWAY I think tomorrow will buy the single 1225FEB put on spx so I will have in effect bought the strangle for feb then legging into the shorts.....

Murray ...still holding on? The lady I follow says we are overbought as of this coming Friday. I think things will be volatile next week....hopefully down.:cool:
 
One more thought. I did a scary thing and looked at the spx 10 yr history. 98 and 99 you would have done fine with OTM puts..2000-2002 crazy..some days...yes DAYS there was a range of almost 200 pts in the SPX and we think 20 is a lot. backtesting this strategy would be fruitless as there is no way based on past history anyone would do this. However the range/volatility in the past two years has been so tight that it is a beautiful thing.....
 
bought 1215 put (50) @1.9 also completed call spread by selling (30 )1345 for1.33 (average) so...holding
Feb 1215 P
Feb 1345/1350 X30 call spread and 1340/1350 X20call spread...

I have been wanting to try buying the strangle then legging into the condor and somehow this month seemed to give me the opportunity to do so. some smart ppl are suggesting an increase in the vol this year so I've decided to try to be more directional in my play. This will give me an opportunity to see if results are better.
 
Everyone

I own the SPX 1280 @ 12 since last december. I wanted to sell the 1285 for 12.50 or 13 to make it a bull call. Does it make sense. I still have it for hedging my 1305/1315 spreads

Cheers

Quote from DonnaV:

exit
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