Vertical Spreads

C

cactiman

Anyone trading Debit or Credit Spreads out there? I think they're great. Have lots of trades going at the moment, Bullish & Bearish, from 1 week to 7 months in duration, with Possible Net Gains of 11% to 177%.
 
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Quote from cactiman:

Anyone trading Debit or Credit Spreads out there? I think they're great. Have lots of trades going at the moment, Bullish & Bearish, from 1 week to 7 months in duration, with Possible Net Gains of 11% to 177%.
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Quote from cactiman:

Anyone trading Debit or Credit Spreads out there? I think they're great. Have lots of trades going at the moment, Bullish & Bearish, from 1 week to 7 months in duration, with Possible Net Gains of 11% to 177%.
More...

Love to trade the box, one of my favorite strategies.
 
Quote from rallydog:

Love to trade the box, one of my favorite strategies.
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I didn't think anybody but MM could make money on boxes. Am I wrong?
 
Quote from rew:

I didn't think anybody but MM could make money on boxes. Am I wrong?
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Why would you think that? Market makers try to keep their delta neutral and adjust their gamma.
 
Quote from rallydog:

Why would you think that? Market makers try to keep their delta neutral and adjust their gamma.
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A box is delta neutral. It's a pure arbitrage play.
 
Quote from rallydog:

Love to trade the box, one of my favorite strategies.
More...

Haven't tried Box Spreads yet. Got killed on a SPY Iron Condor this week though. The big gap-up move on Wednesday went right through the Bear Call Credit Spread on Top, and SPY never fell back down. Ahhhhhh! My own fault of course. Shouldn't be trying to play a tight range (to make a few extra $) while things are so volatile.
 

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Quote from rallydog:

Why would you think that? Market makers try to keep their delta neutral and adjust their gamma.
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slippage + commision is the buggest juice in option, far better than other things like theta, IV and etc.
 
Quote from rew:

A box is delta neutral. It's a pure arbitrage play.
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You are right of course. Perhaps the OP got his terms confused.

Unless of course he is trading boxes in the OEX, which have a huge profit loss potential (or boxes in hard to borrow stocks).
 
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