SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
Well if I were to charge by the page I would certianly use your method because with max posts per page option selected I only show 91 pages lol.
As for paying me back, the random posting of a JA pic (rated PG for the more fragile eyes here and for respct to our lady friend posters) is payment enough LOL.
As for paying me back, the random posting of a JA pic (rated PG for the more fragile eyes here and for respct to our lady friend posters) is payment enough LOL.
Quote from Sailing:
600 pages and going strong.... so where do we pay?
Coach:
I am new to credit spreads and am trying to learn as much as possible from your thread. I am on the second go round reading through this thread and keep on finding things I missed the first time. I have a question regarding what the disadvantages are of using a 10 strike spread as compared to a 20 strike spread given the same short strike and margin:
Say 20 SPX1180/1190 as opposed to:
10 SPX1170/1190
Besides the wider strikes having higher premiums the short strike could be rolled down to more strikes if necessary. Is this just a matter of preference or am I missing something?
I am new to credit spreads and am trying to learn as much as possible from your thread. I am on the second go round reading through this thread and keep on finding things I missed the first time. I have a question regarding what the disadvantages are of using a 10 strike spread as compared to a 20 strike spread given the same short strike and margin:
Say 20 SPX1180/1190 as opposed to:
10 SPX1170/1190
Besides the wider strikes having higher premiums the short strike could be rolled down to more strikes if necessary. Is this just a matter of preference or am I missing something?
Hi guys
I was busy for a few days. donna, i wasnt that worried for SPX positions. This RUT is just refusing to come down. I am mentally preparing to act around 745. What do you think coach, donna?.
By the way, i just bought your book.cant wait to read it...
I was busy for a few days. donna, i wasnt that worried for SPX positions. This RUT is just refusing to come down. I am mentally preparing to act around 745. What do you think coach, donna?.
By the way, i just bought your book.cant wait to read it...
I think 10 v. 20 point spreads is simply a matter of preference. All spread distances have pros and cons so it really comes down to how you want to trade. I find that small accounts like the 5 and 10 point (as well as 15 points) spreads for maximizing the use of their capital. One fund I know of that has many millions uses 100 point spreads!
Find what works best for you
Find what works best for you
as coach says it is definitely personal preference, and how big a margin cushion you have or leave for yourself. If I think my shorts may come under fire then the 5 or 10 pt spread is more manageable because the long strike will have decent premium. If you have a 15 pt (I've even had a 25pt) spread then the long just won't help you....but you do have some room to roll down...HOWEVER if you get into trouble with your short and the market is moving big time then you will have to eat a loss.
A Prego FLy or commonly known as a pregnant Fly is a butterfly but the strikes are not equidistant. One wing is really far from the body so the risk graph looks "pregnant". I put a risk graph up here a few weeks ago in an EXCEL chart as an attachment which shows a sample risk graph.