VIX fly / spread journal

Quote from njrookie1:

I agree with rally. The new cfe margin is ridiculous. It is not even internally consistent. Spread is too expensive and outright too cheap relatively.

Time to move on and expand to other products.
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Couldn't agree more with rally and sellindex; i haven't been trading these for years as some of you, and i'm sure my account size isn't nearly where you guys are, but when I finally understood and learned how to trade these spreads about a year ago it did wonders for my performance... since the margin hike i've only taken a couple trades and none with the profitability of previous ones. I've been forced to focus on other strategies. Brings to mind one of my favourite PTJ quotes "you adapt, evolve, compete or die" or if Jay-z is more your style "on to the next one" :p
 
Quote from sellindexvol66:

It has been some ride , I'm sure you are liking less work and stress but soon you will get bored.
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You are probably right now that the boat is in winter storage and the weather in Chicago is starting to cool down. I am not sure if you traded these back then but when i started in 2007 the spread margins were 50 bucks. :D
 
Quote from rallymode:

You are probably right now that the boat is in winter storage and the weather in Chicago is starting to cool down. I am not sure if you traded these back then but when i started in 2007 the spread margins were 50 bucks. :D
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even less to do right now as cfe is down. honestly its a travesty and should not stand.
you sucked me in in july 2008.
 
Quote from rallymode:

You call 30%+ a little? Let's do some math.

Exchange maintenance - 5000
Exchange initial -5500
IB initial - 6600

If we enter a bear market the margins will likely hit 10-20k unless the methodology changes. Guess where ib will be? Lol You better milk it while you still can.

And to answer your q - the game is over. The only way to make any serious money now is to have a few mil in trading capital. We should feel lucky we were able to use crazy leverage since 2007.
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yeah.. after this recent move in vols and the corresponding margin hike, it really has shown me that i joined the party late, and now its over.. on to developing some new methods.
 
I thought volume on these would die completely. This isn't a big part of what I do anymore but if you'd like to see it changed you should call the OCC. Its out of the hands of the CFE now. From what I can tell it seems that I'm the only one who has complained to the person who actually set it so he doesn't really see it as a problem.

Other option is to find a broker to extend you a margin loan. I don't know one that might on a smaller account but its possible.
 
Quote from garachen:

From what I can tell it seems that I'm the only one who has complained to the person who actually set it so he doesn't really see it as a problem.
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Whoever you talked to at the OCC is a liar. The guy I spoke with didn't sound much different than the incompetent hacks you would encounter working at the DMV. I called back in July and also had a couple of people of stature call for me and from my understanding the only way to change policy is with a move from the board. So unless you know anyone in the exec office of their top clearing members or trustees your phone calls would fall on deaf ears.

I suppose it won't hurt to start a campaign though. Maybe you guys can raise enogh heat around it. :(
 
last time i talked with a senior person at CFE about the margin hike, i was told that that the CBOE top person was going to have a conversation with the top person at OCC. i guess that did not work out.
 
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